Overview

• Federal Reserve Chair Jerome Powell reaffirmed the Fed's independence, rejecting political pressure to cut interest rates despite economic uncertainty from tariffs.
• President Trump has publicly criticized Powell and stated he could remove him 'real fast,' with White House adviser Kevin Hassett confirming legal options are under review.
• The Supreme Court is deliberating cases that could redefine presidential authority to dismiss leaders of independent agencies, potentially impacting Powell's position.
• Economists and global leaders warn that removing Powell could undermine the Fed's credibility, destabilize financial markets, and increase borrowing costs.
• Powell's term as Fed chair runs through May 2026, and he has stated that under current law, he cannot be removed without cause.