US Supreme Court Defends Fed Chair Jerome Powell Against Pressure from President Trump

Amid growing tensions between the White House and the Federal Reserve, a recent Supreme Court ruling firmly affirmed the independence of the Fed, shielding Chairman Jerome Powell from the threat of being fired by President Donald Trump. According to a Reuters report, the ruling is a significant milestone in maintaining the semi-independent structure of the world's largest monetary policy regulator, especially amid growing politicization in Washington.

Ruling affirms limits on presidential power
The Supreme Court's ruling, issued last month, described the Federal Reserve as a "quasi-private entity with a unique structure," and made clear that Fed governors, including the chairman, cannot be removed from office simply for policy disagreements with the president. The decision is aimed at preventing the White House from directly interfering with independent monetary decisions that have a major impact on the national and global economy.

This affirmation not only strengthens Powell's role until the end of his term in May 2026, but also sends a clear message about the necessary independence of monetary policy from political factors.

Trump continues to criticize Powell and the Fed's interest rate policy
President Trump has repeatedly expressed his dissatisfaction with Powell, from the election campaign to his current term. On the Truth Social platform, he recently called the Fed Chairman "'Too Late' Jerome Powell" and criticized him for "refusing to lower interest rates." Trump believes that Powell's policies are putting unnecessary pressure on the economy and financial markets, especially in the context of cooling inflation and signs of weakening growth indicators.

However, economists say the criticism is largely political and unlikely to have a direct impact on the Fed's operations, especially after the Supreme Court ruling.

Trump's influence is limited
According to Reuters analysis, even if he holds the presidency until 2029, if re-elected, Trump will only have two opportunities to appoint additional members to the Fed's Board of Governors, including appointing Powell's successor after his term ends in mid-2026.

Due to the fixed-term nature of the Fed and its independent legal structure, any attempt by the President to change the leadership or policy direction of the central bank will face significant legal and political hurdles. This is especially important during a period when interest rate decisions can have a major impact on the labor market, inflation, and US economic growth.

Fed Independence Remains a Foundation of the US Financial System
Many economists believe that protecting the independence of the Fed is a prerequisite for maintaining confidence in the financial system and the stability of the dollar. If monetary decisions are dominated by politics, the consequences could be long-term instability, high inflation or a deeper recession.

The Supreme Court's decision is therefore seen as a victory for the market economy, as it helps protect the monetary policy authority from short-term political pressures.

Conclusion
Jerome Powell, despite harsh criticism from President Donald Trump, will continue to serve as Fed Chairman for the rest of his term thanks to the Supreme Court's clear legal protection. In a volatile global economy and increasingly important monetary decisions, the independence of the Fed is not only an organizing principle but also a key factor in ensuring long-term financial stability. The court's decision reaffirms the limits of executive power in the monetary sphere, a boundary that markets and experts have always wanted to maintain.