Jerome Powell, the Federal Reserve chairman, is facing a tough barrier from a coalition of high-profile figures threatening his tenure, which extends to May 2026.
Over the past two weeks, President Donald Trump, Federal Housing Finance Agency (FHFA) Director Bill Grand, press secretary of the White House Karoline Leavitt, congressist alerts and Finance Minister Scott Bessent has all escalated attacks that accuse Powell of wrong leadership, political bias and misleading behavior.
The Crypto community that is very aware of is facing uncertainty as this coalition challenges Powell’s future and Fed’s independence.
Is Powell’s days as a bold -chair numbered, or can he resist this unprecedented storm?
Trump’s long -standing feud
Trump, who nominated Powell in 2017, has resumed a feud that began in his first period when he criticized rate increases as harmful to growth. He publicly considered shooting Powell in 2019, an attitude that escalated after his re -election in November 2024.
On June 27, Trump called Powell a “stubborn mule” that accused him of costing “hundreds of billions” by refusing to reduce interest rates, currently at 4.25% – 4.5%. A handwritten note published by Leavitt on June 30 demanded a reduction in rate with reference to lower rates in Japan and China.
Federal Reserve is an independent device. While the president nominates the board members and Congress confirms them, the board is intended to function autonomously based on his own analyzes of tax matters. In addition, rate decisions are decided through a majority of Fed’s Board of Directors, not a single member – including the chairman.
On July 3, Trump called on Powell’s immediate resignation in a truth of truth, claiming mismatch tied to Fed’s $ 2.5 billion renovation (despite the occasional denial of firing plans signalizing Trump’s mention of successors such as Kevin Warsh or Christopher Waller an intention to reshape Fed Fed’s leadership.
The roots of this conflict are tracking for Trump’s first period when he felt Powell a bigger “enemy” than Xi Jinping in 2019, frustrated with rate increases that slowed economic growth.
After winning re -election on November 5, 2024, Trump intensified the pressure, with advisers such as Kevin Hassett explored firing options after Powell refused to resign.
Descends housing criticism
FHFA director Bill Grand has heavily criticized Powell’s high-speed policies as a threat to the housing market.
On July 2, he demanded a congressional investigation and claimed that Powell’s June 25 Senat’s testimony to Fed’s renovation of his headquarters in Washington, DC was “misleading” and reason for removal “for cause.” Supported by Senator Cynthia Lummis (R-WYO.)Claimed the desk Powell erroneous features such as a VIP eatery. His X-positions on June 24 and June 28 accused Powell of political bias and invented customs inflation risks, worsening housing for discrepancy with mortgage rates to 6.6%-7%. Powell has said that characterizations of “luxury” renovations were not accurate.
Expansion of the campaign
Republican senators Rick Scott and Tommy Tuberville have reinforced the pressure on Federal Reserve -President Jerome Powell, targeting his leadership’s financial impact.
On April 28, Scott Powell criticized for monitoring an “unmatched bold,” which he said he lost over $ 2 trillion and sought $ 2.5 billion for a lavish headquarters and called for responsibility for what he described as reckless expenses. On June 17, he condemned Powell’s “terrible decisions” that burdened taxpayers while Fed Compensation exceeded public wages, which means Powell supported policies that prevented growth. Tuberville has repeatedly called for Powell’s firing, for example, June 24.
On July 2, the House Court President Jim Jordan (R-ohio) Signaled openness to investigate Federal Reserve -President Jerome Powell, who responded to FHFA director Bill Pulte’s call for a congress study of Powell’s management. According to a Fox Business report, while talking to Bloomberg, Jordan noted that although no specific plans for a study had been discussed “everything is on the table” for supervision, House Judiciary Committee’s constitutional duty emphasized to supervise the executive and legal branches.
Treasury -Secretary Scott Bessent, a potential Powell sequel, advised on June 30 and July 3 to nominate a new bold governor in January 2026 or a new chair in May 2026, when Powell’s period ends. Warning against attempts to fire Powell due to market risks, such as a 15% sale in April 2025, tied to Trump’s Customs, Bessent’s rate support is connected to the administration’s push.
Powell’s steadfast defense
However, Powell’s attitude is fortified by legal protection.
The Federal Reserve ACT allows only the removal of “for cause” as gross disproportion, reinforced by a recent Supreme Court order cut off fat from arbitrary dismissal. Since Trump’s attack in 2018, Powell has dismissed political pressure such as “noise” confirming data -driven politics.
Fed has had rates of 4.25% – 4.5%, with reference to Trump’s duty as a source of inflation pressure expected to push for personal consumption expenses Inflation against 3% in 2025, which requires cautious policy to maintain 2% long -term expectations.
At the FOMC press conference on June 18, Powell justified the rates of 4.25% -4.5% with reference to customs inflation risks that could push the PCE inflation to 3% in 2025, while emphasizing the need for summer data to assess consumer price through the review.
Powell noted the strength of the economy – 4.2% unemployment and 2.5% private domestic growth – supports a cautious approach, but he acknowledged potential tension between employment and price stability if the tariffs cause persistent inflation.
He emphasized keeping long -term inflation expectations rooted at 2% to avoid persistent price increases and, when asked about political insults, focused solely on delivering a “good, solid American economy.”
The renovation controversy lacks evidence of removal, but talking about a “shadow chair” could undermine Powell’s authority, creating a lame-and-scenario.
An insecure way forward
This Coalition Campaign – Trump’s fiery rhetoric, Pultes Housing Criticism, Leavitt’s Amplification, Congress Survey and Bessent’s Succession Plans – creates an uncertain environment. While Legal Protection Shield Powell, the administration’s push for a 2026 replacement could make him a limp duck.
Whether Powell can navigate this storm while retaining fed independence remains uncertain, but his days, even if they are not immediately numbered, are far from safe.
