Trump's Fed Removal Plans Face Separate Legal Tests
President Donald Trump's potential moves to remove Federal Reserve governors from their positions would require separate legal tests, and the outcome is far from certain. Any effort to fire Jerome Powell, Lisa Cook, or Michael Barr would depend on the specific facts of each case.
The Supreme Court has already weighed in on Cook's situation, allowing her to remain on the Board while her case proceeds through the courts. The court ruled that she must receive notice and an opportunity to respond to the charges before a final decision can be made.
However, the available record does not establish that Trump has decided to pursue all three removals. Powell alleged in January 2026 that the Justice Department had served the Fed with grand jury subpoenas related to his Senate testimony about the Federal Reserve's renovation project. He claimed the investigation's rationale was a pretext and tied the threat of criminal charges to the Fed's interest-rate decisions.
The renovation project, which grew from $921 million in February 2020 to $2.018 billion in 2024, resulted in seven recommendations being accepted by the Board. The findings concerned Board management but did not identify Powell as responsible for the cost increase.