Trump vs Powell: Power Struggle at the Fed

Title: 'Can Trump Fire Powell? A Political Thriller'

In the high-stakes world of Washington power plays, few battles were as explosive as the one between President Donald Trump and Federal Reserve Chairman Jerome Powell.

It was the summer of 2024, and the economy was in turmoil. Inflation was soaring, markets were jittery, and Trump—now back in the Oval Office after a dramatic election—was furious. He blamed Powell for keeping interest rates too high, stifling growth, and hurting his re-election prospects.

'I made him. I can break him,' Trump muttered to his inner circle in the White House.

But could he really fire the Fed chair?

The legal team scrambled. The Federal Reserve was designed to be independent, insulated from political pressure. Yet Trump was determined. He demanded options—could he remove Powell 'for cause'? Could he pressure him to resign?

Behind the scenes, Powell stood firm. He knew the law was on his side. The Federal Reserve Act stated that a chair could only be removed for 'neglect of duty or malfeasance'—neither of which applied.

But Trump wasn’t one to back down. He launched a public blitz, tweeting:

'Jerome Powell is a disaster! Weak, pathetic, and hurting America. The Fed is a joke. #FirePowell'

Markets tanked. Republicans in Congress squirmed. Some warned of a constitutional crisis; others feared a collapse in confidence in the dollar.

Then, the bombshell. A leaked White House memo revealed Trump’s team had drafted an executive order to demote Powell—not fire him outright, but strip him of the chairmanship while keeping him on the Board. Legal scholars gasped. Was this even possible?

The courts would have to decide.

As the battle raged, Powell remained calm. 'The Fed must remain independent,' he declared in a rare press conference. 'Politics cannot dictate monetary policy.'

In the end, the showdown never reached the Supreme Court. Facing backlash from Wall Street, Senate leaders, and even some allies, Trump backed off—grudgingly.

Powell served out his term. But the question lingered: Could a president fire the Fed chair?

The answer: Maybe… but not without a war.

And in Washington, some wars were too costly even for Donald Trump.

THE END.

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