Trump Issues Final Ultimatum to Powell: A “Constitutional-Level” Power Showdown

U.S. President Donald Trump issued a clear warning to Federal Reserve Chair Jerome Powell on April 15: if he refuses to step down after his chair term expires on May 15, he will be directly removed from office. This is not a matter of personal rivalry between the two, but a historic contest over the independence of the Federal Reserve and the boundaries of executive power.

The core of the showdown: Who will have the say after May 15?

Powell’s term as chair ends on May 15, but his term as a Federal Reserve governor continues until January 2028. Under the Federal Reserve Act, board members “shall continue to serve until their successors are appointed,” and Powell has repeatedly said he will carry out his duties in accordance with the law until his successor is in place. However, the successor nominated by Trump, Kevin Wirth, has not yet been confirmed by the Senate. A hearing is scheduled for April 21, but North Carolina Republican Senator Tillis has said clearly that before the Department of Justice concludes its investigation into Powell, he will block Wirth’s nomination from being brought to a Senate vote.

Legal confrontation is unavoidable

Trump’s remarks this time are far more than a mere verbal threat. The Department of Justice’s criminal investigation into Powell is still moving forward. Although a judge previously rejected subpoenas, ruling that the investigation was “nothing more than a pretext for pressure,” prosecutors have decided to appeal. The legal challenges are equally severe: under the 1913 Federal Reserve Act, Federal Reserve governors can be removed only in the case of “serious misconduct,” and Powell has not committed any such conduct. The Trump administration previously attempted to dismiss another Federal Reserve governor, Lisa Cook, and that case is still being heard by the Supreme Court. Analysts note that any forced removal would immediately trigger lawsuits, leading to a drawn-out legal standoff.

The political backdrop of the rate-cut dispute

At the heart of this standoff is a clash over monetary policy. Trump has repeatedly criticized Powell for refusing to cut rates significantly, saying he is “always late and wrong,” and he is convinced that after Wirth takes office, interest rates will be pushed downward. However, with inflation currently being boosted by the situation in the Middle East, Chicago Fed President Goolsbee has indicated that rate cuts may be delayed until 2027. Former Fed Chair Yellen has also publicly warned that Trump’s pressure tactics will damage the Federal Reserve’s credibility and the reputation of the dollar system.

Trump’s “final ultimatum,” on the surface, looks like a personnel arrangement dispute, but in essence it is an institutional shock to the Federal Reserve’s independence. When executive power tries to directly command monetary policy, the Fed’s century-old foundation is facing an unprecedented test. ##特朗普对鲍威尔下最后通牒