US President Donald Trump has frequently criticised Federal Reserve Chair Jerome Powell for his monetary policies but has not actually fired him. The row escalated recently when Trump posted a cartoon on social media declaring, “You’re fired!”, a symbolic act rather than an official dismissal. Internet erupted with rumours, memes and all sorts of speculations from authentication of the post to different AI-generated miscommunications regarding the matter.
Trump's anger is about how Powell handles interest rates. Trump feels that Powell has been slow in reducing rates to boost economic growth, as opposed to Trump's call for more rapid reductions. Even with 2025 rate cuts, Trump demanded bolder action. Powell has been cautious about the rate cuts, carefully observing several factors such as inflation, rate cuts, jobless data, etc.
The U.S. Federal Reserve Act restricts the ability of the President to remove the Fed Chair. Powell may only be removed "for cause" due to improper conduct or malfeasance, not merely due to policy differences. This statutory protection maintains Fed independence and why Trump never took steps to formally remove Powell.
Trump's condemnations went beyond Powell to others in the Fed leadership, such as Governor Lisa Cook, who has been accused of mortgage fraud (denied by Cook). Rumours regarding potential reasons for terminating Powell, such as contentious Fed projects, were floated in news and but did not happen. Powell has insisted that policy choices are determined autonomously, independent of political pressure. He reiterated that threats or public pressure have no effect on the Federal Reserve's mission of sound economic stewardship. The tensions between the two rose to the trolling on internet from both sides' narratives. Trump kept threatening Powell of termination in the past. These rumours still stay afloat in the air but the new spark regarding the controversy came from Trump's post on social media platform Truth Social, displaying in cartoon form of POTUS Trump telling Fed Chair Mr. Powell, "You're Fired."
As of today i.e. 28th September, 2025, Jerome Powell is still Federal Reserve Chair. Apart from Trump's public threats and symbolic acts, dismissal of Powell would mean risking legal wars and market chaos. The episode displays the institutional safeguards guaranteeing the Fed's independence from political pressure.
