Jerome Powell Defies Donald Trump's Authority as Fed Chair
- Jerome Powell was appointed as Fed chair in 2017 by Donald Trump and reappointed by Joe Biden.
- He can only be fired for cause, which has not been precisely defined, ensuring his independence.
- Despite Trump's criticisms, the Fed continues to uphold its mandate to operate free from political influence.
Jerome Powell, the chairman of the US Federal Reserve, has maintained his independence from political pressure, notably from Donald Trump and Joe Biden. Following his appointment by Trump in 2017 and subsequent reappointment by Biden, Powell's position is secure until his term ends in May 2026, as he can only be fired for cause. While Trump has criticized Powell's decisions and expressed a desire to influence interest rates, the Fed has a long-standing mandate to operate independently from elected officials. This independence is crucial to maintaining unbiased monetary policy, ensuring that financial decisions are made without political interference. The legal interpretation of a 'for cause' firing remains ambiguous, but it suggests that mere policy disagreements are insufficient justification for dismissal.