President Donald Trump expressed his desire to see Federal Reserve Chair Jerome Powell terminated, citing disagreements over interest rates and trade policies. However, legally, Trump does not have the authority to fire Powell. Powell, speaking at the Economic Club of Chicago, emphasized the Fed’s independence and the potential challenges posed by tariffs on the economy. He highlighted that Fed governors can only be removed “for cause” as determined by law, emphasizing the broad bipartisan support for the Fed’s independence. Powell also acknowledged a case before the U.S. Supreme Court, initiated by Trump, which could impact the relationship between independent boards and those in power. While Powell does not believe this case directly affects the Fed, he stated they are monitoring the situation closely. Powell, appointed during the first Trump administration and reappointed in 2022, remains committed to safeguarding the Fed’s independence amid political pressures. The ongoing debate underscores the critical role of the Federal Reserve in maintaining economic stability, free from undue political influence.