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Supreme Court Says Donald Trump Can’t Fire Fed Chair Jerome Powell

Published by
Debashree Patra

Fed Chair Jerome Powell got a breather from the Supreme Court after rumors of Trump planning to fire him made the rounds on social media. Shutting down such claims, the U.S. Supreme Court recently ruled that the Federal Reserve is not subject to presidential firing power, even as it allowed Donald Trump to remove leaders of certain independent federal agencies. The decision offers a layer of protection to Powell, who has faced public criticism from Trump in the past

Not All Agencies Are Equal

The ruling, which Bloomberg reports came down on May 23, clarifies that while Trump may remove officials from agencies like the National Labor Relations Board (NLRB) and the Merit Systems Protection Board (MSPB), this does not extend to the Fed. The court described the central bank as a “uniquely structured, quasi-private entity,” essentially putting it in its category, and out of Trump’s reach.

Relief for Powell, Leverage for Trump

This legal clarity likely calms concerns around Powell’s job security. Trump, known for bashing the Fed over interest rates, had previously suggested Powell’s firing was imminent, though he later backed off. Meanwhile, the ruling boosts Trump’s ability to overhaul other federal agencies if re-elected, reshaping how executive power could play out in a second term.

Not everyone on the bench agreed. Justice Elena Kagan, writing for the dissenting liberal justices, criticized the ruling as a political loophole and accused the court of creating a “special rule” just to spare the Fed. She argued it weakens existing protections meant to insulate federal agencies from political swings.

Even Crypto community reacted strongly on this judgement, Mr. VIX noted that the Court may have unintentionally confirmed that the U.S. government handed control of money printing to an entity beyond public accountability. He questions whether SCOTUS understands the implications of what it just acknowledged.

While the Fed escapes political pressure for now, this ruling reopens debates over agency independence and presidential authority. It also comes at a critical time when global markets are watching how U.S. institutions balance power, law, and economic stability.

For now, Powell remains safe, but the tug-of-war between the White House and Washington’s independent agencies is far from over.

FAQs

Why did Trump want to fire Powell?

Trump frequently criticized Powell for not lowering interest rates quickly enough, believing higher rates could harm the economy and impede growth

Can President Trump fire Jerome Powell?

No, the Supreme Court ruled the Federal Reserve is a “uniquely structured” entity not subject to presidential firing power, protecting Powell.

Debashree Patra

Fun-loving and cheerful, a passionate blockchain and crypto writer who knows no boundary…connect if you share the same passion. With 10+ years of writing experience, I am a Crypto Journalist by chance, exploring, and learning all the dynamics of the sci-fi action-filled crypto world. Currently, focusing on cryptocurrency news and price data. With a passion for research and challenging my capabilities, I am slowly getting into the crypto arena to bring new insights every day.

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