Fed Chairman Jerome Powell faces a fierce attack from a high-profile figures threatening his term, which extends into May 2026.
Over the past two weeks, President Donald Trump, the Federal Housing Financial Institution (FHFA) Director Bill Pulte, White House Press Secretary Karoline Leavitt, Congressional allies and Treasury Secretary Scott Bessent all escalated the attack, accusing Powell of mismanagement, political bias and deceptive behavior.
The crypto community is keen to watch, facing uncertainty as this alliance challenges Powell’s future and the Fed’s independence.
Is Powell’s day a day to feed a chair, or is he able to withstand this unprecedented storm?
Trump’s long-term hatred
Trump nominated Powell in 2017 and he re-ordered a dispute that began in his first term when he criticized the rate as harmful to growth. He publicly considered firing Powell in 2019, a position that was upgraded after re-election in November 2024.
On June 27, Trump called Powell “Stubborn Ms,” accused him of refusing to lower interest rates, currently at 4.25% – 4.5%. Handwritten notesLeavitt announced on June 30 that it would demand lower interest rates, citing lower interest rates in Japan and China.
The Fed is an independent entity. The president nominates board members and Congress to confirm this, but the board aims to operate independently based on its own analysis of fiscal affairs. Additionally, interest rate decisions are made through a majority vote on the Fed’s board of directors, not any single member (including the chairman).
On July 3, Trump urged Powell to resign immediately Truth Society Positionallegations of misconduct related to the Fed’s $2.5 billion headquarters renovation (Powell started the project long before he took over As chairman of the Federal Reserve in 2018). Despite occasional denial of the firing plan, Trump mentioned successors like Kevin Warsh or Christopher Waller to express intentions to reshape the leadership of the Fed.
The conflict traces its roots to Trump’s first term when he marked Powell as a bigger “enemy” than Xi Jinping in 2019, frustrating at the pace of accelerated economic growth.
Trump has stepped up pressure after winning reelection on November 5, 2024, with consultants like Kevin Hassett exploring shooting options after Powell refused to resign.
Pulte’s housing criticism
FHFA director Bill Pulte has severely criticized Powell’s high interest rate policy as a threat to the housing market.
On July 2, he Require A congressional investigation alleges Powell’s June 25 Senate testimony about the Fed’s renovation in Washington, D.C. was “deceptive” and was a reason to dismiss. Supported by Senator Cynthia Lummis (R-Wyo.),counter claim Powell misrepresents features like VIP restaurants. His X post was accused of Powell on June 24 and June 28 Political prejudice and Inventing tariff-driven inflation risksmortgage rates are 6.6% to 7%, making housing unbearable worse. Powell says The features of the “luxury” renovation are inaccurate.
Expand the campaign
Republican Senators Rick Scott and Tommy Tuberville have expanded pressure on Fed Chairman Jerome Powell to the economic impact of his leaders.
April 28, Scott criticize Powell, who oversees the “irresponsible Fed”, said he lost more than $2 trillion and sought a $2.5 billion luxury headquarters, urging him to be responsible for reckless spending. On June 17, he condemn Powell’s “terror decision” has put a heavy burden on taxpayers while receiving compensation exceeds public wages, which means Powell supports policies that hinder growth. Tuberville repeatedly called on Powell to shoot June 24.
On July 2, House Judicial Chairman Jim Jordan (R-Ohio) The statement of reviewing Fed Chairman Jerome Powell responded to FHFA director Bill Pulte’s call for a congressional investigation into Powell-led. according to Report Speaking with Bloomberg, Fox Business noted that while no specific plans for the investigation were discussed, “everything is on the table” was monitored, highlighting the constitutional obligations of the House Judiciary Committee to oversee the administration and the judiciary.
Scott Bessent, Treasury Secretary, potential Powell’s successor June 30 and July 3 About the January 2026 nomination for a new federal governor or a new chair for the end of Powell’s term in May 2026. Attempts to fire Powell due to market risks, such as the April 2025 sell-off was linked to Trump’s tariffs, and Bessent’s tax support coincided with the government’s push.
Powell’s firm defense
However, Powell’s position is strengthened by legal protection.
Federal Reserve Act Only allow “for reasons,” such as serious misconduct, are allowed, with a recent Supreme Court ruling covering up the Fed’s reinforcement from arbitrary dismissals. Since Trump’s 2018 attacks, Powell has viewed political pressure as “noise”, reaffirming data-driven policies.
The Fed’s interest rate is 4.25% – 4.5%, citing Trump’s tariffs are a source of inflationary pressures, which promise to boost personal consumption spending Inflation rate in 2025 is 3%, requiring cautious policies to maintain a long-term expectation of 2%.
exist FOMC press conference on June 18Powell believes the holding rate is 4.25% – 4.5%, citing tariff-driven inflation risks that could raise PCE inflation to 3% in 2025, while highlighting the demand for summer data to assess consumer price subpoenas.
Powell noted that the strength of the economy – 4.2% unemployment rate and 2.5% private domestic growth – supports a cautious approach, but he acknowledges the potential tension between employment and price stability if tariffs lead to ongoing inflation.
He stressed that long-term inflation expectations were kept at 2% to avoid sustained price increases, focusing only on providing “good, good American economy” when asked about political insults.
The renovation controversy lacks evidence of dismissal, but talking about the “shadow chair” could undermine Powell’s authority, thus creating a The scene of lascivious feet.
An unstable way forward
The league’s campaigns – Trump’s fierce rhetoric, Pulte’s housing criticism, Levitt’s amplification, congressional scrutiny, and Becente’s succession plan – created an unstable environment. While legal protections are Shield Powell, the government has pushed for a 2026 replacement that could make him a lame duck.
Whether Powell could drive the storm while maintaining Fed independence is still uncertain, but his days, while not immediately numbered, are far from safe.
