Federal Reserve Chairman Jerome Powell faces a fierce barrage of famous figures threatening his tenure in May 2026.
Over the past two weeks, President Donald Trump, Federal Housing and Finance Agency (FHFA) director Bill Prute, White House Press Director Caroline Leavitt, Congressional ally and Treasury Secretary Scott Bescent all have all attacked and blamed Powell for political bias and decaying despair.
As the coalition challenges Powell’s future and the Fed’s independence, the keenly sought out crypto community faces uncertainty.
Powell’s days when the Fed chair is numbered, can he survive this unprecedented storm?
Trump’s long-standing feud
Trump, who nominated Powell in 2017, rekindled the feud that began in his first term when he criticized rating hiking for being harmful to growth. He publicly considered dismissing Powell in 2019. This is the stance that escalated after his re-election in November 2024.
On June 27, Trump called Powell a “stubborn mule” and accused him of refusing to cut interest rates, which are now 4.25% to 4.5%, costing him “hundred millions of millions.” A handwritten note published by Leavitt on June 30th called for a rate cut, citing lower interest rates in Japan and China.
The Federal Reserve is an independent entity. The President nominates board members and Congress confirms them, but the board aims to operate autonomously based on its own analysis of financial issues. Additionally, rate decisions are made through a majority vote by the Fed’s board rather than a single member including chairs.
On July 3, Trump urged Powell to resign immediately in the True Social Post, claiming fraud in connection with the renovation of the Fed’s $2.5 billion headquarters (the project began long before Powell took over as Fed Chairman in 2018). Despite the occasional denial of termination plans, Trump’s references to successors like Kevin Wahsh and Christopher Waller show their intention to restructure the Fed’s leadership.
The roots of this conflict have been frustrated with hiking at rates that slowed economic growth until Trump’s first term, when he labeled Powell as a “enemy” in 2019 as a bigger “enemy” than Xi Jinping.
After winning reelection on November 5, 2024, Trump underwent pressure, and advisers like Kevin Hassett explored shooting options after Powell refused to resign.
Pulte’s Criticism of Housing
FHFA Director Bill Prute has vehemently criticised Powell’s luxury policy as a threat to the housing market.
On July 2, he called for a Congressional investigation and alleged Powell’s June 25 Senate testimony on Washington’s Fed renovation. With the support of Senator Cynthia Ramis (R-Wyo.), Pulte argued for Powell’s misrepresented features, like the VIP dining room. His June 24th and June 28th posts denounced Powell for political bias, inventing tariff-driven inflation risks, exacerbating the impossibility of housing roads at 6.6%-7%. Powell says the features of the “luxurious” renovation are not accurate.
Expanding the campaign
Republican Senators Rick Scott and Tommy Tuberville have targeted the economic impact of leadership and amplified pressure on Federal Reserve Chair Jerome Powell.
On April 28, Scott criticized Powell for overseeing the “immeasurable federal government,” losing more than $2 trillion, sought $2.5 billion from his gorgeous headquarters, urging him accountable for describing it as a reckless spending. On June 17, he condemned Powell’s “terrifying decision” that burdened taxpayers while compensating for compensation, implying that Powell supported policies that outweighed public wages and hindered growth. Tuberville repeatedly called for Powell to be fired on June 24th, for example.
On July 2nd, House Attorney Jim Jordan (R-Ohio) signaled openness to Federal Reserve Chair Jerome Powell’s scrutiny, calling for FHFA Director Bill Prute to seek Congressional investigation into Powell’s leadership. While speaking to Bloomberg, Jordan noted that no specific plans for the investigation were discussed, but stressed the constitutional obligation to oversee the Judicial Committee’s enforcement division for oversight, saying “It’s all on the table” and that for oversight.
Potential Powell’s successor, Scott Becent, advised on June 30th and July 3rd on the appointment of a new federal governor in January 2026 or a new chairman whose term ended in May 2026. Warnings against attempts to fire Powell due to market risk, such as the 15% sale linked to Trump’s tariffs in April 2025.
Powell’s unmoving defense
However, Powell’s position is strengthened by legal protection.
The Federal Reserve Act only allows removal “for the cause.” This has been strengthened by the recent Supreme Court protecting the Fed from voluntary dismissal, like significant illegal activities. Since Trump’s 2018 attack, Powell has dismissed political pressure as “noise” and hrefed the FOMC press conference on June 18th, with Powell pushing 4.25% down 4.25% down. Inflation rate in 2025 was 3%, highlighting the need for summer data to assess consumer price pass-throughs.
Powell pointed out that the economic strength (4.2% unemployment and 2.5% private domestic growth) supports a cautious approach, but acknowledged the potential tensions in job and price stability if tariffs cause sustained inflation.
He emphasized that he focused on providing a “good solid American economy” by pinning long-term inflation expectations at 2%, avoiding sustained price increases and when asked about political insults.
Although there is no evidence of removal in the renovation debate, the “shadow chair” story undermines Powell’s authority and could create lame scenarios.
An unstable road to advance
This coalition’s campaign – Trump’s fiery rhetoric, Pulte’s housing critique, Leavitt’s amplification, Congressional scrutiny, and Bessent’s succession plan – creates an unstable environment. Legal protection shields Powell, but with the push for the 2026 administration, he could become a lame duck.
The Crypto Community is keen and watched carefully on the policy shift to trigger a bull run.
It remains uncertain whether Powell will be able to navigate this storm while maintaining Fed independence, but his days, although not immediately numbered, are unsafe.
