Mirror Review
July 21, 2025
Summary:
- Tensions have escalated between the White House and the Federal Reserve, with President Trump publicly criticizing Fed Chair Jerome Powell’s decisions on interest rates.
- There is speculation that the President may seek to remove Jerome Powell from his position.
- The controversy has also drawn attention to the cost of renovations at the Federal Reserve building, which some in the administration have cited as a potential justification for Powell’s dismissal.
“Can Donald Trump fire Jerome Powell?”
This question is currently trending through financial markets as the White House and the Federal Reserve clash.
So, who is Jerome Powell, and what has he accomplished as the 16th Chair of the Federal Reserve?
As the political drama arises, it’s a good time to look back at the tenure of the man at the center of it all.
Jerome Powell is the Chair of the Federal Reserve of the United States. He was appointed by Donald Trump in 2018 and reappointed by Joe Biden in 2022.
And his time as the head of the U.S. central bank? It has been anything but quiet!
Jerome has helped the American economy through some of its most challenging periods in recent history. And here are six of the most significant Jerome Powell accomplishments:
1. Overcoming the COVID-19 Pandemic
When the COVID-19 pandemic hit in 2020, the global economy faced an unavoidable crisis. But Powell’s Federal Reserve acted swiftly and decisively to prevent a complete financial meltdown.
- Emergency Measures:
The Fed slashed interest rates to near-zero, launched a massive bond-buying program, and introduced a range of emergency lending facilities to keep credit flowing to households and businesses.
- Market Stabilization:
These actions were crucial in stabilizing financial markets and preventing a deeper recession. Many economists credit the Fed’s quick response with laying the groundwork for the economic recovery that followed.
2. Taming Inflation
As the economy rebounded from the pandemic, a new challenge emerged: soaring inflation. Prices rose at their fastest pace in decades, squeezing household budgets and becoming a major political issue.
Fed Chair Powell and the Federal Open Market Committee (FOMC) responded by raising interest rates multiple times in 2022 and 2023.
- Aggressive Rate Hikes:
The Fed embarked on a series of aggressive interest rate hikes, one of the fastest tightening cycles in its history. While this made borrowing more expensive, it was a necessary step to cool down the overheating economy pressures.
- A Delicate Balance:
The challenge was to raise rates enough to curb inflation without tipping the economy into a recession—a “soft landing.” While the full effects of these policies are still unfolding, inflation has shown signs of easing.
3. Maintaining a Strong Labor Market
One of the hallmarks of the post-pandemic economy has been a remarkably strong labor market. Despite the challenges of inflation and rising interest rates, unemployment has remained at historically low levels.
- Focus on Maximum Employment:
Powell has repeatedly emphasized the Fed’s dual mandate of price stability and maximum employment. He has often highlighted the benefits of a strong labor market, particularly for low- and middle-income workers.
- A Resilient Job Market:
The resilience of the job market in the face of the Fed’s tightening policies has been a positive surprise for many economists.
4. Commitment to Fed Independence
Throughout his tenure, Jerome Powell has faced intense political pressure, particularly from President Donald Trump.
However, he has consistently defended the Federal Reserve independence, arguing that monetary policy decisions should be based on economic data, not political considerations.
- A Non-Political Stance:
In his public statements, Powell has been careful to avoid being drawn into political debates. He has stressed that the Fed’s independence is essential for its credibility and effectiveness.
- “Rule of Law”:
As Powell has stated, “Rule of law unites us as Americans.” He has applied this principle to his leadership of the Fed, emphasizing the importance of following the central bank’s mandate without yielding to external pressures.
5. Modernizing the Fed’s Framework
In 2020, the Federal Reserve announced a major update to its long-run monetary policy framework. This was the result of a comprehensive review that began before the pandemic.
- Average Inflation Targeting:
The new framework introduced the concept of “average inflation targeting,” meaning the Fed would allow inflation to run moderately above its 2% target for some time to make up for periods when it has been below target.
- Inclusive Employment Goals:
The updated framework also placed a greater emphasis on “inclusive” employment, recognizing that different demographic groups experience the labor market differently.
6. Enhancing Transparency and Communication
Jerome Powell has made an effort to make the Federal Reserve’s actions and thinking more transparent to the public.
- Press Conferences:
He holds regular press conferences after each Federal Open Market Committee (FOMC) meeting to explain the Fed’s decisions and answer questions from reporters.
- Clearer Communication:
The Fed has also worked to improve the clarity of its public communications, providing more information about its economic forecasts and policy intentions.
This commitment to clarity has helped to demystify the Fed’s actions for the public and financial markets, making its policies more predictable and effective.
End Note
Jerome Powell accomplishments as Fed Chair has been a masterclass in crisis management.
From the depths of the pandemic to the fight against inflation, he has led the central bank with a steady hand.
While his policies have not been without criticism, he has earned a reputation as a pragmatic and non-ideological leader.
As the political debate over his future continues, it’s worth remembering the words of Senator John Kennedy of Louisiana, who warned that firing Powell could “crash both the stock and bond markets.”
This proves the critical role that the Federal Reserve and its chair play in the stability of the U.S. and global economies.
In conclusion, the story of Jerome Powell’s leadership at the Federal Reserve is one of overcoming unseen challenges with a commitment to the central bank’s dual mandate and its independence.
Jerome Powell’s legacy will be determined by how the economy adapts and the long-term effects of the policies he has put in place.
