Trump Pits Himself Against Powell

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President Donald Trump has repeatedly hinted at dismissing Federal Reserve Chair Jerome Powell. On Thursday, as he prepared to visit the U.S. central bank’s headquarters, Trump criticized Powell for his reluctance to cut interest rates, calling him a “numbskull.” If Trump were to proceed with firing Powell, it would raise significant legal questions about the Federal Reserve’s historical independence.

The Federal Reserve Act of 1913 allows the president to “remove for cause” members of the Board of Governors, including the Fed chief. However, this law is vague and does not define what constitutes “cause” or set a standard for removal—no president has ever exercised this power over a Fed board member. If Trump were to remove Powell, it would likely spark a legal battle, testing the boundaries and assumptions around executive power and agency independence.

In recent years, federal judges have frequently declared Trump’s dismissals of officials from independent agencies unlawful. This raises questions about the president’s authority to remove appointees without cause. A Washington, D.C.-based appeals court is poised to rule on a related matter, potentially setting up another Supreme Court review. The outcome could significantly impact the future of executive branch power and agency independence, particularly regarding financial regulators like the Federal Reserve.

(With inputs from agencies.)

In a unique start to his ruling against President Donald Trump’s administration on September 30, U.S. District Court Judge William Young included a scanned handwritten note sent to his office. The note read: “Trump has pardons and tanks – what do you have?” At the top of Young’s opinion in AAUP v. Rubio, which ruled that Trump’s effort to deport foreign-born student protesters was unconstitutional.

October 8, 2025

📚 Reading Comprehension Quiz

10 Points

In the context of President Trump's criticism of Jerome Powell, which statement best reflects the legal challenges that would arise if Trump were to remove Powell?

A. The Federal Reserve Act of 1913 clearly defines 'cause' for removal and has been used by previous presidents. B. If Trump were to remove Powell, it would likely lead to a legal battle testing the boundaries of executive power and agency independence. C. Federal judges have consistently upheld Trump's dismissals of officials from independent agencies as lawful. D. There is no historical precedent for a president to exercise removal powers over Fed board members, making such an action straightforward.

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