A President Tests 112 Years of Central Bank Autonomy—Now Facing a Confirmation Deadlock and the Prospect of Powell Staying On
February 4th, 2026: Stephen Miran Resigns from White House Council of Economic AdvisersNew here? Follow stories to track developments over time. Create a free account to get updates when stories you care about change.
No president has fired a sitting Federal Reserve governor in the central bank's 112-year history. Donald Trump is trying to be the first and wants to replace the Fed chair with a loyalist.
His August 2025 attempt to remove Governor Lisa Cook over unproven mortgage fraud allegations led to a Supreme Court showdown. In a January 21, 2026 hearing, all nine justices, including three Trump appointees, expressed skepticism about Trump's removal claims. Justice Brett Kavanaugh warned that the administration's position would "weaken, if not shatter, the independence of the Federal Reserve."
Fed Chair Jerome Powell attended the arguments and called the case "perhaps the most important legal case in the Fed's 113-year history." Nine days later, Trump nominated Kevin Warsh, a 55-year-old former Fed governor and Trump ally, to replace Powell when his term expires in May 2026. The nomination now faces unexpected obstacles.
Senate Banking Committee Democrats have refused to hold confirmation hearings until Trump drops criminal investigations into both Powell and Cook, calling them "pretextual." Republican Senator Thom Tillis has vowed to block Warsh unless those investigations are resolved. This dual opposition could deadlock the 13-11 Republican majority and has created a perverse outcome: Powell may remain as FOMC chair beyond his May 2026 expiration if Warsh cannot be confirmed.
Yet Trump doubled down on February 3, telling reporters that U.S. Attorney Jeanine Pirro should "take it to the end and see" with the Powell probe, signaling no retreat. Trump appointee Stephen Miran resigned from the White House Council of Economic Advisers on February 4 after his temporary Fed appointment ended. The combined pressure is the most sustained presidential attack on Fed independence since its founding.
Trump's vow to fire Federal Reserve's Lisa Cook reflects ...
How MSU economist Lisa Cook could impact Federal Reserve board
Detailed macro shot of the United States Federal Reserve System seal on paper currency.
Why Trump's attack on the Fed Chair is could be risky for the ...
Yahoo Finance
The Fight Over Fed Independence Just Got Taken To a Whole ...
Bloomberg Podcasts
"Will No One Rid Me of This Turbulent Priest?": Trump's Fed War
Patrick Boyle
Images from Openverse under Creative Commons licenses. Videos from YouTube.
Curated perspectives — historical figures and your fellow readers.
Fictional AI pastiche — not real quote.
"The man who controls the money supply controls the truth about the money supply; and so the first step is always to replace the honest accountant with a loyal one, then to investigate the honest accountant for crimes, and finally to insist that none of this constitutes interference."
Fictional AI pastiche — not real quote.
"How deliciously revealing: a man who claims to champion free markets cannot tolerate a single institution that escapes his will — for the true enemy of the statist is never the welfare program or the regulation, but the remnant of independence that reminds him power has limits. Trump does not wish to destroy the Federal Reserve; he wishes to *own* it — which is precisely how every looter throughout history has approached the machinery of civilization."
Exploring all sides of a story is often best achieved with Play.
Your progress in this debate will be lost.
Choose one persona for each side of the debate
Choose personas with different perspectives for a more dynamic debate.
Select debater for this side:
No debate personas available right now.
Select debater for this side:
No debate personas available right now.
Make your prediction before the referee scores
Pick the question both personas must answer in the final round
Debate Oracle! You called every round!
Sharp Instincts! You know your debaters!
The Coin Flip Strategist! Perfectly balanced!
The Contrarian! Bold predictions!
Inverse Genius! Try betting the opposite next time!
Can you match the quotes to the right people?
— Who said this?
Tip: press 1– to answer.
The U.S. central bank, responsible for monetary policy, bank supervision, and financial stability.
The nation's highest court, which will determine whether presidents can fire Fed governors over alleged pre-appointment misconduct.
August 2025 February 2026
Trump's most loyal Fed ally Stephen Miran resigns from CEA after his temporary Federal Reserve appointment ends January 31. Miran had pledged to step down if his Fed duties extended beyond that date, reducing direct White House-Fed proximity.
Senate Banking Committee Democrats issue statement demanding Warsh confirmation be delayed until criminal investigations into Powell and Cook are dropped, calling them "pretextual" efforts to control the Fed.
Trump tells reporters that U.S. Attorney Jeanine Pirro should continue the Powell investigation and "take it to the end and see," refusing to back down despite Senator Tillis's vow to block Warsh confirmation until the probe is resolved.
Trump announces nomination of Kevin Warsh, a former Fed governor (2006-2011) and longtime Trump ally, to replace Powell. Markets react negatively with stocks falling and Treasury yields rising. Senator Thom Tillis immediately vows to block confirmation until DOJ probe of Powell concludes.
Senate Banking Chairman Tim Scott (R-SC) endorses Warsh nomination, saying Trump's pick "reflects" focus on "accountability and credibility." Ranking Democrat Elizabeth Warren condemns it as Trump's attempt to "seize control of the Fed," calling Warsh someone "who cared more about helping Wall Street after the 2008 crash than millions of unemployed Americans."
Trump announces on Truth Social that he will name his Fed chair pick the following day, describing the nominee as "somebody that could have been there a few years ago"—a reference to Warsh's runner-up status in 2017.
Federal Reserve keeps interest rates unchanged at 3.6% in its first 2026 meeting. Two governors—including Trump appointee Stephen Miran—dissent, favoring a rate cut. Powell states economy is "on a firm footing," defying Trump's demands for aggressive cuts.
Fed Chair Powell describes the Supreme Court case over Trump's attempt to fire Lisa Cook as "perhaps the most important legal case in the Fed's 113-year history," underscoring the existential stakes for central bank independence.
Legal analysts and news outlets report that oral arguments revealed unexpectedly strong opposition from all nine justices to Trump's removal claims, with even conservative Trump appointees expressing concerns about destroying Fed independence.
Justices hear arguments in Trump v. Cook. Powell attends in rare public show of support. Decision expected by late June or early July 2026.
Trump calls Powell a "jerk" who "will be gone soon," intensifying pressure on the Fed chair.
Republican Senator Thom Tillis of North Carolina announces he will oppose confirmation of any Federal Reserve nominee—including for chair—until the DOJ investigation of Powell is "fully and transparently resolved." As a Banking Committee member, his opposition could deadlock confirmations.
Fed Chair Powell discloses DOJ has served grand jury subpoenas and threatened criminal indictment over the $2.5B headquarters renovation. Powell calls it a "pretext" masking Trump's frustration with interest rates.
Trump demands that the Fed cut rates whenever markets perform well, proposing rates as low as 1% versus the current 3.5-3.75%.
Supreme Court hears Trump v. Slaughter, with conservative justices signaling support for expanding presidential removal power over independent agencies.
Supreme Court sets oral arguments for January 21, 2026.
Court declines to immediately remove Cook, announces it will hear full arguments in January 2026.
Alan Greenspan, Ben Bernanke, and Janet Yellen—all three living former Fed chairs—submit Supreme Court brief opposing Cook's removal.
Solicitor General D. John Sauer files emergency petition asking the Supreme Court to immediately allow Cook's removal.
Appeals court rules 2-1 to maintain the injunction, blocking Cook's removal before the Fed's September meeting.
Judge Jia Cobb issues preliminary injunction, finding Cook showed strong evidence her removal violated the Federal Reserve Act. Cobb rules "for cause" applies to conduct while in office.
Cook's attorney Abbe Lowell announces she will sue to challenge her removal, arguing it violates the Federal Reserve Act's "for cause" protections.
Trump declares Cook removed from the Fed Board, the first presidential attempt to fire a sitting Fed governor in the central bank's 112-year history.
Trump posts on Truth Social calling for Cook to resign from the Federal Reserve Board.
William Pulte refers Cook to Attorney General Bondi for alleged mortgage fraud related to property purchases in 2021, before she joined the Fed.
3 moments from history that rhyme with this story — and how they unfolded.
President Franklin Roosevelt fired FTC Commissioner William Humphrey over policy disagreements on New Deal economic regulation. Humphrey died the following year, and his estate sued for back pay. The Supreme Court ruled unanimously that Congress could protect commissioners of "quasi-legislative" agencies from arbitrary removal, limiting the president to firing only for "inefficiency, neglect of duty, or malfeasance."
Roosevelt's firing was invalidated. The estate received back pay.
The ruling became the constitutional foundation for independent agencies—the FTC, SEC, NLRB, and Federal Reserve all relied on it. For 90 years, it insulated regulatory bodies from presidential control.
The Trump administration has asked the Supreme Court to overrule Humphrey's Executor entirely. If the Court does so while ruling against Cook, the 90-year foundation for agency independence collapses, and the Fed's protected status disappears.
Fed Chair Paul Volcker raised short-term interest rates to nearly 20% to break 14% inflation—triggering the worst recession since the Great Depression. Unemployment hit 11%. Farmers blockaded the Fed building with tractors. Congressman George Hansen threatened impeachment. In July 1984, President Reagan and Chief of Staff James Baker summoned Volcker to the White House and ordered him not to raise rates before the election.
Volcker held firm. Inflation fell below 4% by 1983. Reagan publicly supported price stability despite private pressure.
The Volcker shock established central bank independence as essential to credible monetary policy. Economists credit Fed autonomy with four decades of stable inflation and the dollar's reserve currency status.
Volcker's success required resisting political pressure at enormous short-term cost. If presidents can fire Fed governors who raise rates, future chairs may lack the credibility to make unpopular but necessary decisions.
President Andrew Jackson vetoed the recharter of the Second Bank of the United States, calling it a dangerous concentration of power that threatened democracy. He then removed federal deposits from the bank and distributed them to state-chartered "pet banks." Bank president Nicholas Biddle retaliated by restricting credit, triggering a financial panic.
The Second Bank's charter expired in 1836. Jackson won reelection decisively in 1832.
The U.S. lacked a central bank for 77 years. Financial panics in 1873, 1893, and 1907 led Congress to create the Federal Reserve in 1913—deliberately decentralizing it to prevent another Jackson-Biddle conflict.
The Federal Reserve's founders designed it specifically to avoid the executive-central bank warfare that destroyed the Second Bank. The Supreme Court has cited this history, calling the Fed a "uniquely structured, quasi-private entity" in the tradition of the early national banks.