Big Take

Can Trump Tell Powell ‘You’re Fired'?

14 snips
Apr 21, 2025
Michael McKee, Bloomberg's international economics and policy correspondent, and Saleha Mohsin, senior Washington correspondent and host of The Big Take DC podcast, dive into the explosive tension between former President Trump and Federal Reserve Chair Jerome Powell. They discuss the legal ramifications of Trump's threats to fire Powell and explore how this conflict could destabilize the U.S. dollar and global markets. The episode further examines the risks posed to Federal Reserve independence and its impact on economic stability.
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INSIGHT

Trump-Powell Relationship Breakdown

  • President Trump nominated Jerome Powell but their relationship has soured with no direct communication since nomination.
  • Trump's public attacks on Powell focus on pressure to cut interest rates and create economic scapegoats.
INSIGHT

Legal Limits on Firing Fed Chair

  • The Federal Reserve Act allows firing a Fed governor only for cause, traditionally meaning misconduct or incapacity.
  • The president's attempt to fire Powell would likely lead to a Supreme Court challenge given the Fed's unique protections.
INSIGHT

Market Fears over Fed Chair Removal

  • Markets fear Trump might replace Powell with a rate-cutting loyalist, which risks higher inflation and economic slowdown.
  • Powell's dual roles as Fed chair and governor complicate any removal attempts, affecting Fed governance and market stability.
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