Trump’s threat makes it far more likely Powell stays on. 
Another Trump Threat to Fire Powell
The Wall Street Journal reports Trump Threatens to Fire Powell if He Doesn’t Resign When Fed Chair Term Ends
President Trump doubled down on the Justice Department’s criminal investigation of Federal Reserve Chair Jerome Powell, saying in a television interview that he won’t drop the probe and threatening to fire Powell if he doesn’t resign when his term as chair ends next month.
“Well then I’ll have to fire him, OK?” Trump said in a Fox Business interview that aired Wednesday morning.
Powell’s term as Fed chair ends in a month. However, he has the option to remain as a voting member of the Fed’s board until 2028. Last month, Powell said he had “no intention of leaving” the Fed until the investigation is “well and truly over, with transparency and finality.”
When asked about that in the Fox Business interview, Trump replied: “If he’s not leaving on time, I’ve held back firing him, I’ve wanted to fire him, but I hate to be controversial, you know. I want to be uncontroversial.”
Trump seemed to suggest he would stand by the probe even if it obstructs the confirmation of Kevin Warsh, Trump’s pick to be the next Fed chair.
Sen. Thom Tillis of North Carolina has said that he won’t support Warsh’s nomination until the probe into Powell is resolved.
Asked if he thought Tillis would vote for Warsh, Trump said, “He might not, but that’s why Tillis is no longer a senator.”
Tillis, a Republican, is retiring but remains a senator.
The Justice Department investigation is examining whether Powell lied to Congress in testimony about a Fed building renovation. It appears to be proceeding: On Tuesday, prosecutors visited the construction site.
Powell has said the investigation is a pretext, part of Trump’s long-running efforts to influence how the Fed sets interest rates.
Powell Likely to Stay On
Either Trump is totally ignorant, or he wants a showdown with the Fed.
Those are not mutually exclusive, It could be both.
Fed Chairs normally resign when their term as Chair ends, but there is no requirement.
Powell can stay on until 2028. It’s Powell’s option, not Trump’s.
See You in Court
Given Trump’s threat, my base case now is Powell stays on. Powell will not want to appear to bend to the illegal demands of Trump.
Powell will stay on and Trump will drag this out in the courts.
I can give you the court results in advance, guaranteed, assuming Trump fires Powell and this is not some mindless bluff.
Court Results In Advance
- Trump will lose in District Court
- Trump will lose in Appellate Court
- Trump will lose in Supreme Court
A Supreme Court loss can come in one of two ways.
3A: The Supreme Court hears the case and Trump loses.
3B: The Supreme Court declines the case thereby affirming the Appellate Court decision.
Other than prolonging Trump’s agony, there is little difference between 3A and 3B.
For now I am inclined to believe 3B. The Supreme Court will not want to waste its time on such obviously ridiculous matters.
Scathing Ruling Blasts Trump Administration
Trump has tried several time to subpoena Powell over alleged mishandling of renovations to the Fed building,
Please consider BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, Petitioner, v. Miscellaneous Action No. 26-12 (JEB) UNITED STATES OF AMERICA, Respondent.
Memorandum Opinion
“Jerome ‘Too Late’ Powell has done it again!!! He is TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair. He is costing our Country TRILLIONS OF DOLLARS . . . . Put another way, ‘Too Late’ is a TOTAL LOSER, and our Country is paying the price!” Donald J. Trump (@realDonaldTrump), Truth Soc. (July 31, 2025, at 7:11 AM), https://perma.cc/PX9L-RPSD. That is one of at least 100 statements that the President or his deputies have made attacking the Chair of the Federal Reserve and pressuring him to lower interest rates.
See generally ECF No. 14-1 (Reply to Mot. to Quash) (collecting statements). So is this: “‘Too Late’ Jerome Powell is costing our Country Hundreds of Billions of Dollars. He is truly one of the dumbest, and most destructive, people in Government . . . . TOO LATE’s an American Disgrace!” Donald J. Trump (@realDonaldTrump), Truth Soc. (June 19, 2025, at 10:04 AM), https://perma.cc/748P-CN6T.
Perhaps it comes as no surprise, then, that the D.C. U.S. Attorney’s Office has recently opened a criminal investigation into Powell. It has served two subpoenas on the Federal Reserve Board of Governors, seeking records about recent renovations of the Board’s buildings and testimony that Powell delivered to Congress that briefly discussed those renovations. The Board has now responded with a Motion to Quash, contending that the subpoenas are merely part of the gameplan to pressure Powell to bend to the President’s wishes or to get rid of him. The case thus asks: Did prosecutors issue those subpoenas for a proper purpose? The Court finds that they did not. There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will. On the other side of the scale, the Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President. The Court must thus conclude that the asserted justifications for these subpoenas are mere pretexts. It will therefore grant the Board’s Motion to Quash. It will also grant the Board’s Motion to Partially Unseal the Motion to Quash, related briefing, and this Opinion.
Conclusion
A mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning. On the other side of the scale, the Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual. The Court therefore finds that the subpoenas were issued for an improper purpose and will quash them. It will also unseal redacted versions of the Motion to Quash, related briefing, and this Opinion.
Senator Tillis Praises Court Ruling
“This ruling confirms just how weak and frivolous the criminal investigation of Chairman Powell is and it is nothing more than a failed attack on Fed independence. We all know how this is going to end and the D.C. U.S. Attorney’s Office should save itself further embarrassment and move on. Appealing the ruling will only delay the confirmation of Kevin Warsh as the next Fed Chair.”
Tillis has stated he will hold all Trump appointments until Trump drops the case against Powell.
That includes Kevin Warsh as the next Fed chair.
It would be idiotic for many reasons to appeal the above ruling but guess what.
U.S. Attorney Jeanine Pirro Will Appeal
Please note Pirro blasts judge blocking Justice Department subpoenas to Federal Reserve in Powell probe
Judge Chastises Trump’s DOJ Over “Frivolous” Subpoenas of the Fed Chair
On March 13, I commented Judge Chastises Trump’s DOJ Over “Frivolous” Subpoenas of the Fed Chair
These legal morons are truly gluttons for punishment. The odds of winning this appeal are essentially zero.
So, I welcome the appeal. It will only make the DOJ look stupider when the ruling happens.
Now we have a third case headed to the courts, assuming Trump does fire Powell.
The second case is Trump’s firing of Lisa Cook. The Supreme Court has taken that case.
Key Legal and Practical Details
- If the Federal Reserve Chair’s four-year term expires without a new chair being nominated by the president and confirmed by the Senate, the current chair continues to serve in the role on an interim or “pro tem” basis until a successor is confirmed.
- This is the standard process under the Federal Reserve Act and historical precedent.
- The chair position is a designation atop the person’s underlying role as a member of the Board of Governors (which has a separate 14-year term).
- The chair does not automatically vacate their board seat when the chair term ends.
Powell’s chair term ends May 15. Trump has nominated Kevin Warsh as successor. But Powell has publicly affirmed he would serve as chair pro tem if confirmation is delayed.
His separate governor term runs until 2028, giving him the legal right to remain on the Board.
Lisa Cook Court Case
Trump fired Fed Governor Lisa Cook over ridiculous charges that she lied on mortgage application.
The irony is that its proven that Trump did lie on mortgage applications.
I discussed the Lisa Cook case several times, most recently on January 22, 2026.
Please consider The Supreme Court, Even Kavanaugh, Ready to Strike Trump’s Move on Lisa Cook
The DOJ was amusingly feeble in the SC regarding the Fed’s Lisa Cook.
Some of the back and forth between Trump’s Solicitor General John Sauer and the Court was downright funny. Here are a couple of clips.
GENERAL SAUER: Surely, that if investors are jittery or whatever the argument is, you would have seen that on August 25th, and you did not see that. In fact, you have the surprised —
JUSTICE BARRETT: Well, I’ll interrupt you there to say that I don’t want to be in the business of predicting exactly what the market’s going to do.
GENERAL SAUER: What the Court has to do is weigh — essentially, you have those amicus briefs as a reflection of very elite opinion, elite opinion that what’s happened here —
JUSTICE BARRETT: But there’s a risk, General Sauer.
GENERAL SAUER: Yes.
JUSTICE BARRETT: I don’t want to be responsible for quantifying that risk. I’m a judge, not an economist.JUSTICE JACKSON: You’re — you’re — you’re repeating —
GENERAL SAUER: — by seeing it so low —
CHIEF JUSTICE ROBERTS: Counsel —
JUSTICE JACKSON: — you’re repeating —
CHIEF JUSTICE ROBERTS: — please allow the Justice —
GENERAL SAUER: I’m sorry.
JUSTICE JACKSON: You’re repeating the allegation. What I’m asking you is the evidence that supports that allegation.
GENERAL SAUER: Well, the removal order addresses that because it — JUSTICE JACKSON: What is the removal order? The — the — the Truth Social post?JUSTICE KAVANAUGH: And why is that independence important in your view? GENERAL SAUER: For — I — I don’t — we don’t dispute the importance of that for many of the reasons that their amici say, but we emphasize that there’s a balance struck here. This is not a ironclad “you can never be removed.” There is a cause removal authorized in –
JUSTICE KAVANAUGH: But, on that, your position that there’s no judicial review, no process required, no remedy available, a very low bar for cause that the president alone determines, I mean, that would weaken, if not shatter, the independence of the Federal Reserve that we just discussed. GENERAL SAUER: We disagree with that.
JUSTICE KAVANAUGH: Let’s talk about the real-world downstream effects of this because, if this were set as a precedent, it seems to me, just thinking big picture, what goes around comes around. All of the current president’s appointees would likely be removed for cause on January 20th, 2029, if there’s a Democratic President or January 20th, 2033, and then we’re really at at-will removal. So what are we doing here?
GENERAL SAUER: Yeah.
JUSTICE KAVANAUGH: What is — you know, we started — that’s why I started with what’s the purpose of the independence in the for-cause removal. If we accept all these no procedure, no judicial review, no remedy, you know, that’s what’s going to happen, I think, and then — then where are we? So do you dispute that that is, you know, the — the real-world effect?
GENERAL SAUER: I cannot predict what future presidents may or may not do, but the argument strikes me as a policy argument —
JUSTICE KAVANAUGH: Well, history is a pretty good guide. Once these tools are unleashed, they are used by both sides and usually more the second time around. We have to be aware of what we’re doing and the consequences of your
position for the structure of the government.
DOJ Failure Baked in the Cake
The Lisa Cook case sets the tone for Trump’s latest nonsense.
Why anyone would stay working for Trump when they are guaranteed to look like idiots in court is a mystery.
Trump is destined to become a three-time Fed court-case loser (subpoena of Powell, Lisa Cook, firing Powell).
All Trump can do is make the DOJ look totally stupid in court, again. From that aspect, bring it on. However, it is a waste of the court’s time.
Indeed, look for a judge to make this comment “Why are you wasting the court’s time on this?”
I look forward to again saying “I Told You So”, just as I did with tariffs and will also do with Birthright Citizenship.
Related Posts
February 20, 2026: Supreme Court Strikes Trump’s Reciprocal Tariffs In 6-3 Vote (I Told You So)
Forgive me for bragging, but I got every justice correct.
April 1, 2026: Supreme Court Birthright Citizenship Arguments Suggest 7-2 Minimum Against Trump
Justice Kavanaugh hammers Trump’s lawyer, setting the tone.
More “I told you so” posts are coming up.
Does it really change something if Powell stays or not?
According to the deficits and the debt there is not too many solutions:create as much inflation as possible or stop everything.
All these guys chose the inflation path clearly.
Raising or lowering the rates depends only on the quantity of REAL inflation(not the official numbers)
Ironically, if Warsh’s true goal is to dramatically shrink the Fed’s balance sheet, he’s exactly what the Fed needs at this juncture. It would flush some “extend-and-pretend” corruption out of the economic system, and allow credit spreads to widen to levels that accurately reflect risk.
if he can elimiate 1/2 of the fraudulent dem voters= before the elections= minus the amount of current voters he loses for the party it will result in a net gain .
that’s a big if.
You obviously are clueless. They had their chance to produce evidence in court of fraudulent voters. They completely failed to do so. A rational person would have concluded maybe these loud mouthed idiots who produced no evidence in court are in fact, loud mouther idiots. But no, you still believe the lying scumbags. Astounding.
Re Lisa Cook:
The fact that Trump fraudulently applied for two mortgages on properties in Florida and stated on the mortgage applications that they were both his primary residences is telling of his duplicity. He never lived in either of the homes according to the realtors statements.
Yet he attacks Cook as if her one partial and retracted declaration of duplicitous residences is disqualifying?
Trump is a sick bully that belongs in prison. He should be removed from office by a plurality of congressional leadership.
Keep the stonk market open let the rest take care of itself
Trump does not know how, or where, to pick his fights. One doesn’t have to agree with the Fed;s last few decades, or even like the Fed in general, to see the institutional decay in these lurching moves.
This will not be the brick wall he finally splatters himself upon. The Fed lacks any natural machinery to wage affirmative lawfare. But Trump will find that brick wall comewhere. It will be no holiday; it will leave years of wreckage.
Webej highlighted the most appropriate comment and why it’s almost silly to even write so much on POTUS: “…but I hate to be controversial, you know. I want to be uncontroversial.” Everything he does, says or has done or said, his entire life, is meant to be sensationalized. And we give it air daily. It sells. The policies might not. The results might not. But the words sure do.
Trump hates articulate or intelligent people…
And brown people, perhaps everyone but the Israelis?
Above all, Trump hates the rule of law and the US constitution.
The Israelis are sufficiently capitalized to insure themselves against Trump’s hatred.
Why achieve your goal with subtlety when you have the chance to trip yourself up with shun-level bullying?
Reminds me of the war goals …
What an Epic Loser !
Forgive me if I’m mistaken but didn’t the Supreme Court already plainly say that Trump shouldn’t even think of firing Powell?
I think SCOTUS said the Fed is historically unique among agencies, in terms of its relationship with the executive branch and president. I.e., that the Fed probably is more insulated from direct presidential manipulation. That is, a “for cause” requirement for firing might actually have teeth. But that was probably dictum, a sort of comment on the side of its then-current case, not binding as precedent (and SCOTUS can undo the rule from any prior holding it or any other federal court made, precedent or not). But it gives some indication of its views. I don’t think SCOTUS would presume to “plainly say that Trump shouldn’t even think of” anything. It doesn’t make advisory or hypothetical rulings. I think the Court has enough subtlety to know, as we all do, the fruitlessness of saying that. Tell him he shouldn’t even think of something, and he will triple down, to spite you.
Is a conversation on the Fed’s reach, function and size due? Absolutely. Warsh, right or wrong, is one of those engaging that. Are Trump’s methods counterproductive? Absolutely. He has become a thuggish, even (scarily) ludicrous mirror image of those who persecuted and prosecuted him. ‘Let’s all be even worse” is the horrible model the congress and presidency have followed since at least the early 1960s.
His dementia is becoming undeniable.
Reality can always be denied, by those who refuse to ever admit being wrong
The Volcker inflation fighting model worked because there was a fairly deep recession, and we haven’t had one.
Yes, in many ways I’ve long felt how can Monetary Policy control a Supply-Side Shock (the OPEC Oil Embargo)? We’ll never know.
Difficult to know b/e in the real world it’s Joint Testing problem. You can’t test under both conditions to see.
What is stunning is a vastly batter way to fight/regulate inflation is right in front of them, has been for decades, and they never even talk about. Raising and lowering interest rates is lame.
Fairly deep?
You can threaten to fire him too
The Fed is going to raise rates because they finally found something to blame, even though they let inflation remain above 2% for 5 years.
It’s time for the American people to fire taco before he does more harm.
its too late to undo bumbama or Barack JoBiden
Whatabout?
Just a couple of snippets here: The Bush war against terror in Iraq? How much did it (and is still adding) to the national debt? AND signing into law: The MMA was signed by President George W. Bush on December 8, 2003 The LARGEST socialist program since FDR