The rumblings from the White House may have tempered a bit but it’s no surprise that President Donald J. Trump’s been fuming because the Federal Reserve Bank is ignoring his requests to lower interest rates.
In fact, Trump wants to fire Jerome Powell, the head of the Federal Reserve, as part of his sweeping efforts to control the federal government.
The president and his team continue to issue demands that the independent Fed cut interest rates amidst the ongoing tariff wars and rocky stock and bond markets, all hit with repeated sudden and extreme changes in direction.
The Fed’s interest rates remain at 4.50% (which translates into an approximately 7.5% prime interest rate that American consumers use to pay for loans on mortgages, car loans and other goods.
All of the economic uncertainty is translating into the lowest consumer confidence levels since those pollings began.
It’s not just the price of eggs, anymore. Americans are being hit with rising healthcare and credit-card debt plus record-breaking housing costs that crimps their family budgets and forces serious kitchen table discussions.
Related: Fed official sends strong message about interest-rate cuts
Add concern about the future of the “One Big Beautiful Bill” that Congress is kicking around, including massive federal layoffs, acute spending cuts and Medicaid and Medicare changes, and Americans are holding onto their pennies (while those coins are still legal) tighter than ever before.
Trump’s frustration with the Fed has prompted him on multiple occasions on his Truth Social posts and in other discussions to mull firing Powell.
Powell is a noted and respected economist with deep expertise in private equity and government service. He served on the board of the Federal Reserve before accepting the chair post which ends May 14, 2026. He has repeatedly said he will not step down before the end of his term.
Supreme Court case is high stakes for the Fed Reserve Bank
On May 22, the Supreme Court ruled in a 6-3 decision that the Trump administration has the executive authority to remove members of independent federal agencies, upholding a lower court ruling.
Gwynne Wilcox of the National Labor Relations Board (NLRB) and Cathy Harris of the Merit Systems Protection Board (MSPB) were both fired by Trump.
Related: Hedge-fund manager sees U.S. becoming Greece
Chief Justice John Roberts wrote the majority opinion in the unsigned rule that the president had absolute authority to remove executive branch officials without cause.
The lower court case cited precedent established by the 1935 Supreme Court decision in Humphrey’s Executor v. United States protecting certain independent agency officials from arbitrary dismissal. This 90-year ruling prevented a president from taking control over the federal bureaucracy.
The Roberts Supreme Court sidestepped it.
“Because the Constitution vests the executive power in the President,” the conservative majority said, “he may remove without cause executive officers who exercise that power on his behalf, subject to narrow exceptions recognized by our precedents.”
However, the Supreme Court made one notable distinction in this unsigned decision.
So, can Trump dump Powell?
Not at this time, according to the ruling. The Supreme Court made a notable distinction, asserting that the Federal Reserve is a “uniquely structured, quasi-private entity.” Therefore, the president's removal authority does not extend to its members.
This clarification alleviated concerns that the ruling might embolden Trump’s efforts to dismiss Powell over their monetary policy disagreements.
The decision has broader implications for the autonomy of independent agencies. Liberal justices, including Justice Elena Kagan, dissented in the ruling, arguing that the majority's opinion undermines longstanding safeguards designed to ensure independent, bipartisan decision-making free from presidential influence.
Congressional Democrats have emphasized the need for the central bank to remain independent from political influences. U.S. Sen. Elizabeth Warren (D-Mass.), a frequent Powell critic, has warned repeatedly of a market “crash” if Trump should fire him.
Republicans appear split. Some publicly say Trump has the right to express concerns about the Fed’s actions, while many privately say they fear raising interest rates will not spur the type of economic growth the country currently needs.
Powell, for the record, has repeatedly said he would not step down if Trump did attempt to remove him from the role.
Related: Veteran fund manager sends hard-nosed message on Fed interest rate policy
