Jerome Powell just said the quiet part out loud. The Federal Reserve Chair warned that if a sitting president could dismiss Fed officials over policy disagreements, the institution’s credibility would effectively collapse.
Powell stated that removing officials over policy differences is “not permitted under the law,” a reminder that shouldn’t need making but apparently does.
The political pressure campaign
President Trump has made multiple threats to fire Powell across 2025 and 2026, creating a slow-burning confrontation between the executive branch and the country’s most powerful economic institution.
Powell’s term as Fed Chair expired on May 15, 2026. But rather than quietly stepping aside, he has pledged to remain on the Board of Governors through 2028.
