Federal Reserve Chair Jerome Powell is as soon as once more making headlines amid rising political stress and an unprecedented authorized probe that has spotlighted central financial institution independence. In early 2026, Powell revealed that the U.S. Division of Justice opened a prison investigation into his testimony a few multiyear, multibillion-dollar renovation of the Federal Reserve’s headquarters — a scenario he has publicly characterised as politically motivated stress geared toward influencing financial coverage.
On the identical time, Donald Trump — who has repeatedly criticized Powell for resisting calls to chop rates of interest — has publicly rebuked Powell’s coverage strategy and recommended he favors new management on the Fed. Nonetheless, in a January 2026 Reuters interview, Trump stated he has no instant plans to fireplace Powell.
Amid ongoing tensions with Trump, right here’s what to find out about who Powell is, how lengthy his time period lasts, and whether or not he’ll be capable of end it.
Who Is Jerome Powell?
Powell is the present Chair of the Federal Reserve, the central financial institution of the USA. He has held the place since February 2018 and was reappointed for a second time period in 2022. A graduate of Princeton College and Georgetown College Regulation Middle, Powell labored as an legal professional for about 5 years earlier than transitioning into funding banking.
Who Appointed Jerome Powell?
Powell was first appointed to the Federal Reserve Board of Governors by former President Barack Obama in 2012. He was later nominated as Fed Chair by Trump in 2017 and commenced serving in that function in 2018. In 2021, former President Joe Biden nominated him for a second time period, which was confirmed by the Senate in 2022.
When Is Jerome Powell’s Time period Up?
Powell’s present four-year time period as Chair of the Federal Reserve is about to finish on Could 15, 2026. Nonetheless, he’ll stay a member of the Federal Reserve Board of Governors till January 31, 2028, except he resigns or is eliminated for trigger.
Can Trump Hearth Powell?
Legally, the President can not instantly hearth the Chair of the Federal Reserve with out trigger. The Fed was designed to function independently from the White Home to insulate financial coverage from political affect.
Whereas no Supreme Court docket case has particularly addressed the dismissal of a Fed Chair, two main rulings present robust authorized precedent:
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Humphrey’s Executor v. United States (1935): The Court docket dominated that members of unbiased federal companies can’t be eliminated by the President with out trigger, particularly when the company is meant to perform free from govt management.
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Seila Regulation LLC v. Shopper Monetary Safety Bureau (2020): Whereas this case handled single-director companies, the Court docket reaffirmed the broader precept that multi-member boards just like the Federal Reserve get pleasure from structural independence from the presidency.
Powell has beforehand said that the President “doesn’t have the authority” to take away him and that such an motion is “not permitted below the regulation.” Until Congress amends the regulation or a future court docket ruling modifications precedent, Powell is predicted to stay in his function till his time period expires in 2026.