Is President Trump able to dismiss Jerome Powell from the Federal Reserve, despite the institution’s independence?

Federal Reserve chair Jerome Powell emphasized the need for “greater clarity” on tariffs before considering interest rate cuts. President Donald Trump expressed his desire to terminate Powell, but legally, he cannot directly fire him. Powell highlighted the importance of the Fed’s independence, stating that governors can only be removed for cause as determined by law. However, there is a Supreme Court case being pursued by Trump that could potentially impact the relationship between independent boards and the president. This case challenges the 1935 Humphrey’s Executor precedent, which restricts the president from firing independent agency board members without cause. While Powell acknowledged the monitoring of this situation, he believes that the decision may not directly affect the Fed. Powell, who was appointed during the first Trump administration, was reappointed for a four-year term in 2022. Overall, Powell’s remarks reflect the ongoing tension between the Fed and the Trump administration, particularly regarding the issue of tariffs and interest rates.