Overview

• White House economic adviser Kevin Hassett confirmed that the administration is actively reviewing legal avenues to remove Federal Reserve Chair Jerome Powell.
• Trump has publicly criticized Powell for resisting immediate interest rate cuts and accused him of politicizing the central bank's decisions.
• The president's push for rate reductions aligns with his economic strategy to stimulate growth ahead of the 2026 midterm elections, despite concerns about inflation risks.
• Legal experts remain divided on the feasibility of firing Powell, as such a move would require proof of grave misconduct and could face significant procedural hurdles.
• Senior advisors, including Treasury Secretary Scott Bessent and former Fed Governor Kevin Warsh, have urged Trump to maintain the Federal Reserve's independence.