Federal Reserve Chair Jerome Powell is once again making headlines amid rising political pressure and an unprecedented legal probe that has spotlighted central bank independence. In early 2026, Powell revealed that the U.S. Department of Justice opened a criminal investigation into his testimony about a multiyear, multibillion-dollar renovation of the Federal Reserve’s headquarters — a situation he has publicly characterized as politically motivated pressure aimed at influencing monetary policy.
At the same time, Donald Trump — who has repeatedly criticized Powell for resisting calls to cut interest rates — has publicly rebuked Powell’s policy approach and suggested he favors new leadership at the Fed. However, in a January 2026 Reuters interview, Trump said he has no immediate plans to fire Powell.
Amid ongoing tensions with Trump, here’s what to know about who Powell is, how long his term lasts, and whether he’ll be able to finish it.
Who Is Jerome Powell?
Powell is the current Chair of the Federal Reserve, the central bank of the United States. He has held the position since February 2018 and was reappointed for a second term in 2022. A graduate of Princeton University and Georgetown University Law Center, Powell worked as an attorney for about five years before transitioning into investment banking.
Who Appointed Jerome Powell?
Powell was first appointed to the Federal Reserve Board of Governors by former President Barack Obama in 2012. He was later nominated as Fed Chair by Trump in 2017 and began serving in that role in 2018. In 2021, former President Joe Biden nominated him for a second term, which was confirmed by the Senate in 2022.
When Is Jerome Powell’s Term Up?
Powell’s current four-year term as Chair of the Federal Reserve is set to end on May 15, 2026. However, he will remain a member of the Federal Reserve Board of Governors until January 31, 2028, unless he resigns or is removed for cause.
Can Trump Fire Powell?
Legally, the President cannot directly fire the Chair of the Federal Reserve without cause. The Fed was designed to operate independently from the White House to insulate monetary policy from political influence.
While no Supreme Court case has specifically addressed the dismissal of a Fed Chair, two major rulings provide strong legal precedent:
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Humphrey’s Executor v. United States (1935): The Court ruled that members of independent federal agencies cannot be removed by the President without cause, especially when the agency is intended to function free from executive control.
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Seila Law LLC v. Consumer Financial Protection Bureau (2020): While this case dealt with single-director agencies, the Court reaffirmed the broader principle that multi-member boards like the Federal Reserve enjoy structural independence from the presidency.
Powell has previously stated that the President “does not have the authority” to remove him and that such an action is “not permitted under the law.” Unless Congress amends the law or a future court ruling changes precedent, Powell is expected to remain in his role until his term expires in 2026.
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