Is Jerome Powell’s Tenure as Fed Chair Under Threat Amid Rising Political Pressure?

Jerome Powell, chairman of the federal reserve system, faces hard fire from the coalition of high -ranking figures threatening his tenure, which applies to May 2026.

Over the past two weeks, President Donald Trump, Federal Agency for Housing Financing (FHFA) Director Bill Pulte, the White House’s press secretary Karoline Leitt, congress allies and Finance Minister Scott Bessnt, all escalated attacks and accused Powell of poor management, political bias and deceptive behavior.

The crypto community, very monitoring, faces uncertainty because this coalition challenges Powell’s future and the independence of the Fed.

Are Powell’s days like a Fed -numbered chair, or can this unprecedented storm last?

Trump’s long -term dispute

Trump, who nominated Powell in 2017, ruled a dispute that began in his first term of office when he criticized the rates of rates as harmful to growth. In 2019, he publicly considered the fireplace Powell, an attitude that escalated after his re -election of November 2024.

June 27. Trump called Powell and “Stubborn mule“He accuses him of being” hundreds of billions “by refusing to reduce interest rates, currently to 4.25% – 4.5%. hand -written notePromoted by LAVITT 30 June, demanding rates and quoting lower rates in Japan and China.

The federal reserve system is an independent entity. While the President nominates members of the Board and Congress confirms them, the Board of Directors is to operate autonomously on the basis of its own analyzes of fiscal affairs. Moreover, the decision on the rate is mostly decided by the vote of the Fed Governor Council, not the only member – including the chairman.

July 3 Trump urged Powell’s immediate resignation VA Truth Social Contributionblaming misconducts linked to the reconstruction of the Fed headquarters of $ 2.5 billion (The project started long before Powell took over as a Fed chair in 2018). Despite the occasional denial of the shooting plans, Trump’s mention of successors such as Kevin Warsh or Christopher Waller, signals the intention to transform the Fed leadership.

The roots of this conflict follow Trump’s first term of office when Powell described as a larger “enemy” than Xi Jinping in 2019, frustrated by raising rates that slowed economic growth.

After the 5th November 2024 won the re -election, Trump intensified the pressure, while the advisors like Kevin Hassett explored the possibilities of shooting after Powell refused to resign.

Pulte’s criticism of housing

FHFA director Bill Pulte hardly criticized Powell’s policy with a high degree as a threat to the housing market.

2 July on asking The Congress Investigation, which claims that the testimony of the Senate of Powella 25 June was about the reconstruction of the headquarters in Washington, Washington, was “misleading” and reasons for removing “for the reason”. Supported by Senator Cynthia Lummis (R-Wyo.)Counter claimed Powell distorted features such as VIP dining room. His x posts on June 24 and 28 June accused Powell of Political bias and Inventive tariff inflation of risksImproved housing of indisputability with mortgage rates to 6.6% – 7%. Powell said The characterization of “luxury” reconstruction was not accurate.

Campaign expansion

Republican senators Rick Scott and Tommy Tuberville strengthened pressure on the chairman of the federal reserve Jerome Powell and focused on the economic impact of his leadership.

28th April Scott criticized Powell for supervision of the “irresponsible Fed” that he said he had lost over $ 2 trillion and was looking for $ 2.5 billion for a rich headquarters and urged responsibility for what he described as ruthless expenses. June 17th convicted Powell’s “terrible decisions” that burdened taxpayers, while Fed Commpensation exceeded public wages, suggesting that Powell supported policies that prevented growth. For example, Tuberville repeatedly demanded Powell’s fire June 24.

2 July President Jim Jordan (R-ohio) It signaled openness for checking the chairman of the Jerome Powell federal reserve system and responded to the call of the director of FHF Bill Pulte to the Powell Congress Investigation. According to a message Fox Business, when talking to Bloomberg, Jordan noted that while no specific plans for investigation were discussed, “everything is on the table” for supervision emphasizing the constitutional obligation in supervision of executive and court branches.

Finance Minister Scott Bessnt, potential successor of Powell, advised June 30 and July 3 About the nomination of the new Fed Governor in January 2026 or a new chair in May 2026, when the Powell period will end. The warning of Powell firing attempts due to market risks, such as 15% selection in April 2025 linked to Trump’s tariffs, will be cope with the pressure of administration.

Powell’s perennial defense

However, the position of Powella is enriched by legal protection.

Law of Federal Reserve System It only allows removal “because of”, such as gross misconduct, reinforced by the recent decision of the Supreme Court, which protects the Fed from any release. From Trump 2018 attacks, Powell rejected political pressure as “noise” and reaffirmed data -based policy.

Fed held rates at 4.25% – 4.5%, and quoted Trump’s tariffs as a source of inflation pressure that is expected to push personal consumption expenses Inflation towards 3% in 2025, which requires cautious policy to maintain 2% long -term expectations.

On Press Conference 18 June FomcPowell justified to hold 4,25%-4.5%, referring to the risks of inflation focused on tariff, which could shift the PCE inflation to 3%in 2025, emphasizing the need for summer data to assess the passage of the consumer price.

Powell noted that the power of the economy – 4.2% unemployment and 2.5% private domestic growth – supports cautious approach, but acknowledged the potential tension between employment and price stability if tariffs cause permanent inflation.

He stressed that he maintained long -term expectations of inflation anchored to 2%to avoid a permanent increase in prices, and when he asked political insults, he only focused on providing a “good, solid American economy”.

The controversy of renovation lacks evidence of removal, but talking about a “shadow chair” could undermine the authority of Powell and create a Sculpture.

An uncertain way forward

The campaign of this coalition – Trump’s fiery rhetoric, Pulte’s criticism of housing, Leitt’s reinforcement, congress control and Bessent’s sequence plans – creates an uncertain environment. While the legal protection of Shield Powell, the pressure of the administration on the 2026 replacement could make him a chrome duck.

Whether Powell can navigate in this storm while maintaining the independence of the Fed, remains uncertain, but his days, though not immediately numbered, are far from safe.