It’s well understood by now that former President Donald Trump cannot directly fire Federal Reserve Chair Jerome Powell. But the rest of the Federal Reserve Board? That’s a different story—and Trump knows it. With several Biden appointees currently holding key positions, Trump might seize the opportunity to overhaul the Fed’s leadership if he returns to office.
The Board and Its Vulnerabilities
The Federal Reserve Board comprises seven members, all appointed by the President and confirmed by the Senate. Each serves staggered 14-year terms, with additional roles like Chair and Vice Chair carrying specific term limits. While the Chair, Jerome Powell, enjoys legal protections that make removal difficult, the other members don’t have the same level of job security.
Powell, appointed by Trump in 2017, remains Chair until 2026. Under federal law, he can only be removed “for cause,” which requires proof of gross misconduct or a significant violation of duty—not mere policy disagreements. Powell has made it clear he won’t step down unless legally compelled. When asked if he’d resign if requested by Trump, Powell’s one-word reply—“No”—spoke volumes.
However, Trump isn’t currently focused on Powell. Instead, his attention is reportedly turning toward other board members, especially those appointed by President Joe Biden.
Who’s on the Chopping Block?
Michael Barr – Vice Chair for Supervision
Michael Barr, tasked with overseeing bank regulation, is a prime target. Appointed by Biden, Barr’s term runs until 2026. Trump’s advisors are exploring ways to remove him, arguing that his role in regulation isn’t as securely protected as Powell’s position in monetary policy. Barr, clearly aware of the looming threat, has already enlisted legal support from Arnold & Porter, a top law firm.
Adriana Kugler – Governor
Another Biden appointee, Adriana Kugler, serves a term ending in January 2026. Trump may see an easier path to removing her, given reports of her strained reputation and lack of strong support.
Philip Jefferson and Lisa Cook – Governors
Both Jefferson and Cook were appointed by Biden in 2022 and could also find themselves on Trump’s radar. While their specific roles within the board aren’t as contentious, their association with the Biden administration makes them potential targets in Trump’s reshaping of the Fed.
Trump’s Allies on the Board
Christopher Waller, appointed in 2020, and Michelle Bowman, who joined in 2018, are Trump loyalists. Waller focuses on monetary policy, and Bowman represents community banking interests. Both are expected to retain their positions under a potential Trump presidency.
Legal Loopholes and Strategies
Federal law states that Fed governors can only be removed “for cause,” a phrase that remains ambiguous. While misconduct clearly qualifies, disagreements over policy likely do not. But Trump, known for testing legal boundaries, may push this to court.
Alan Blinder, a former Vice Chair of the Fed and Princeton economist, has suggested that the courts would likely side with Powell and the governors. However, Blinder acknowledged the unpredictability of the current Supreme Court, making the outcome uncertain if such a case escalates.
Another potential move? Demoting Powell. Trump could strip him of his Chair position while allowing him to remain on the board. This has never been done before, leaving the legal waters murky.
Trump could also circumvent legal battles by lobbying Congress. The Federal Reserve Act isn’t immutable, and a Republican-majority Congress could amend it to weaken the Fed’s independence.
A Historical Perspective
The Fed’s independence from political influence has been a cornerstone of its operations since the 1950s when it officially separated from the Treasury Department. Most presidents have respected this autonomy. Trump, however, has consistently challenged norms, making him likely to disrupt the status quo.
Historical attempts to remove independent agency officials have been rare but significant. During Franklin D. Roosevelt’s presidency, a landmark Supreme Court case protected agency independence. Legal experts believe this precedent would be critical if Trump tries to oust Powell or other board members.
The Bigger Picture
The Federal Reserve’s decisions ripple across the global economy, affecting everything from inflation and employment to international markets. Any attempt to undermine its independence could shake investor confidence and destabilize financial markets.
Wall Street is already uneasy. Powell’s recent anti-crypto comments, which caused an 8% drop in Bitcoin, highlight the Fed’s power to move markets. A shakeup under Trump could amplify market volatility, with unpredictable consequences for the U.S. and global economies.
Trump’s potential return to the White House poses critical questions about the balance between executive power and institutional independence. While the
outcome remains uncertain, the stakes are unquestionably high.
