World
Can Donald Trump fire Jerome Powell, US Federal Reserve chair?
President Donald Trump is sending mixed messages about whether he will fire Federal Reserve Chair Jerome Powell.
Trump said on July 16 he is “not planning on doing anything” when asked if he would fire Powell. However, he also said he doesn’t “rule out anything” and mentioned a renovation project with ballooning costs.
“I think it’s highly unlikely unless he has to leave for fraud,” Trump said. “And it’s possible there’s fraud involved with the $2.5, $2.7 billion renovation. This is a renovation, how do you spend $2.7 billion? And he didn’t have proper clearance.”
The Federal Reserve has been undergoing building renovations since 2021 on a project that the board that controls the Fed first approved in 2017. The project’s cost of $2.5bn is about $600m above the original budget, according to The Associated Press.
The cost has increased because of design changes, increasing labour and material costs and “unforeseen conditions”, such as “more asbestos than anticipated”, the Fed said in an FAQ.
But Trump’s administration seems to be using the renovation as a possible reason to oust Powell. Russ Vought, director of the Office of Management and Budget, sent Powell a July 10 letter saying the project is “out of compliance with the approved plan” and “in violation of” the National Capital Planning Act, which outlines how agencies can make changes to federal buildings.
Trump’s feud with Powell isn’t new. For months, the president has criticised Powell, whom he appointed to the role in 2017, for refusing to drop interest rates. The Fed raised interest rates in 2022 and 2023 during former President Joe Biden’s administration as a response to inflation.
Since Trump entered the White House in January, he has told Powell to resign and threatened to fire him.
“If I want him out, he’ll be out of there real fast, believe me,” Trump said in April. “I’m not happy with him.”
In November, after the 2024 election, reporters asked Powell if he would step down or whether he thought Trump had the authority to fire him.
“Not permitted under the law,” Powell said.
Trump spoke to a group of Republican lawmakers on July 15 about firing the chair, several news organisations reported. Trump showed lawmakers a draft letter firing Powell, The New York Times reported.
Trump denied having written a letter.
“No, I talked about the concept of firing him. I said, ‘What do you think?’ Almost every one of them said I should,” Trump said. “But I’m more conservative than they are.”
While Trump attributed his reticence to fire Powell to his “conservatism”, the bigger impediment is a question of legality. Here’s why.
What is the role of the Federal Reserve; who appoints its chair?
The Federal Reserve is the country’s central bank. Its responsibilities include setting interest rates and supervising and regulating banks. It was created in 1913 as part of the Federal Reserve Act and is run by an independent board of governors. The seven governors that make up the board are nominated by the president and confirmed by the Senate. The president selects the chair and two vice chairs from among the seven, according to the Congressional Research Service.
While talking to reporters, Trump appeared to overlook that he was the person who nominated Powell to be the chair in 2017: “I’m surprised he was appointed,” Trump said. “I was surprised, frankly, that Biden put him in and extended him.”
In 2021, Biden nominated him for a second four-year term, which is set to end in May 2026. After that, Powell can remain on the board of governors until January 2028.
Can the president fire the Federal Reserve chair?
Unlike other government agencies, the Fed has a lot of independence from Congress and the White House, the Congressional Research Service said in a January report.
According to the report, economists have justified the independence, saying that decisions about monetary policy shouldn’t be influenced by political pressures. To ensure Fed accountability, the chair testifies before Congress, much like other government agencies.
The Fed chair can be removed “for cause by the President”, according to the law. This refers to “inefficiency, neglect of duty, or malfeasance in office”, according to a Supreme Court decision about the Federal Trade Commission.
In May, the Supreme Court ruled on Trump’s authority to fire members of two different independent agencies. In its 6-3 ruling, the Court granted the Trump administration’s emergency request to fire the heads of the agencies while the case over the legality of firing them played out in the courts.
In its opinion, the Supreme Court addressed the Fed, saying its ruling didn’t affect the agency.
“The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States,” the Supreme Court said.
Some legal experts question the legality of Trump firing Powell. Any move to oust him would likely end up in the courts.
Peter Conti-Brown, a professor of financial regulation at the University of Pennsylvania, said the Fed’s building renovation costs aren’t “cause” for Powell’s dismissal.
“There is no factual basis to support any conclusion that the cost overruns on the renovation project constitute anything like fraud or gross negligence,” Conti-Brown said. “Had Powell committed fraud, in this context or any other, there could well be a case for his removal.”
Conti-Brown said that Trump has long talked about wanting Powell’s removal. A court may consider Trump citing the renovation’s budget as “pretext” for his firing – a legal term used to describe a false reason an employer gives for firing an employee in order to cover the real reason, Conti-Brown said.
“Courts evaluating any attempted removal after the fact will assess both the animus and pretext very heavily against President Trump,” Conti-Brown said.
However, it is unclear how courts would react because “this is uncharted legal territory”, Jeremy Kress, a former Fed banking regulator who is a faculty director of the University of Michigan’s Center on Finance, Law and Policy, told The New York Times.
Lev Menand, a legal scholar at Columbia University, agreed with Kress.
“In normal times, I would say Powell wins 10 times out of 10,” Menand told The New York Times. “But these aren’t normal times, because this court has shown that it is willing to look the other way when the president engages in illegal conduct and it is willing to construe the president’s power under the Constitution as so broad as to allow the president to flout laws.”
World
Appetite among NATO members to join Iran war ‘very limited’, says Eide
Norway has pushed back against criticism from US President Donald Trump over what he described as “zero” European support in the conflict with Iran.
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“NATO is a defensive alliance. It is not an attack alliance,” Norway’s Foreign Minister Espen Barth Eide told Euronews’ Europe Today flagship morning show.
Eide said NATO members are focused on safeguarding key global trade routes, including keeping the Strait of Hormuz open. “NATO countries are doing something, but it’s not as a party to a conflict,” he added.
Trump has repeatedly criticised NATO allies for not backing Washington in the Iran conflict. He raised the issue again during a White House meeting earlier this month with NATO Secretary General Mark Rutte.
Eide argued that there had been no prior preparation or consensus within the alliance. As a result, there is “very limited appetite” among member states to join the war.
He said that while both the US and Iran may have reasons to end the conflict, “the sides are far apart”, with negotiations hindered by opposing demands.
On Monday, Trump said the United States would maintain its blockade of Iranian ports until Tehran agrees to a peace deal.
Still, Eide pointed to signs of “some progress”, noting the broader global impact of the conflict. “This is not only an issue for the two sides, but it affects the whole world economy,” he said.
Addressing a European diplomatic push to establish a Palestinian state, Eide reiterated support for a two-state solution based on long-standing United Nations principles. However, he acknowledged that such an outcome is “not around the corner”.
He added that a two-state solution is also in Israel’s interest, describing it as “the only viable solution for real peace in a very troubled region”.
Norway, alongside Spain and Ireland, recognised the State of Palestine in 2024.
World
Iran War Live Updates: Trump Officials and Iran Plan New Talks Despite Mixed Messages
The United States military last week extended its blockade on vessels coming in and out of Iranian ports to the waters of the wider world, declaring that it would pursue any ship aiding Iran, regardless of location on the high seas or flag.
The U.S. “will actively pursue any Iranian-flagged vessel or any vessel attempting to provide material support to Iran,” Gen. Dan Caine, chairman of the Joint Chiefs of Staff, said Thursday, noting that the American troops beyond the Middle East will engage in operations to thwart Iranian shipping.
The extension of the blockade comes as the economically vital Strait of Hormuz remains all but closed to commercial traffic and the two-week cease-fire between the United States and Iran nears an end. The move aligns longstanding American economic policies targeting Iran with the current military campaign against it, maritime and military law experts say.
But it raises a host of legal and practical questions.
“War is a messy thing not just on the combat side but under national and international law,” said James R. Holmes, chair of maritime strategy at the Naval War College.
“From a legal standpoint, a blockade is an act of war, so the blockade probably is legal to the extent Operation Epic Fury is,” he said using the name of the U.S. military campaign against Iran.
Since Congress has not declared war against Iran, no formal state of war exists between the United States and the Islamic Republic. But Mr. Holmes noted that “undeclared wars are more the rule than the exception in U.S. history,” with joint resolutions of Congress, United Nations Security Council resolutions and NATO decisions invoked to justify fighting.
“This campaign may be more unilateral than most, but it is not without precedent,” he said.
Under international law, the legality of the blockade is “more ambiguous,” said Jennifer Kavanagh, a senior fellow and director of military analysis at Defense Priorities, a foreign policy think tank in Washington.
For a blockade to be legal, Ms. Kavanagh said, it must be “effective,” meaning that it is both enforceable and enforced. Some would argue that a “‘global blockade’ is not permissible in conception” because it is overly broad, she said.
Still, expansive blockades have taken place throughout history, including during World War II, when states enforced naval blockades worldwide other than in neutral territorial seas. Over the centuries before that, the British blockaded France throughout the Revolutionary and Napoleonic Wars, and during the War of American Independence, the colonies and their allies raided British shipping as far away as the Indian Ocean.
Enforcing expansive blockades is difficult, however.
“The seven seas are a big place, and the largest navy or coast guard is tiny by comparison,” Mr. Holmes said. Whether the U.S. blockade ultimately is deemed “effective,” legally speaking, will depend on whether the U.S. has enough assets like ships, aircraft, boarding crews and intelligence gathering to enforce it.
The blockade does not have to be “airtight” to meet the legal test, Mr. Holmes said, and assessing its effectiveness will be tough for outside observers in any case.
Enforcement may also have to be somewhat selective, he suggested.
“Now, it is possible our leadership might quietly let a ship proceed when it suits the national interest,” Mr. Holmes said. “For instance, with a summit coming up between President Trump and General Secretary Xi” — Mr. Trump is to meet with China’s leader, Xi Jinping, in May — “Washington might not want to ruffle feathers by obstructing China’s oil imports.”
The expanded blockade is part of a longstanding economic campaign against Iran, but it represents something of a tactical change for the Trump administration.
Earlier in the war, the United States temporarily lifted sanctions on Iranian oil at sea to ease the pressure on global energy prices. And before imposing a blockade on Iranian ports last week, the U.S. allowed Iranian tankers to transit the Strait of Hormuz for the same reason.
Now Washington seems to be returning its focus to keeping pressure on Iran.
“The blockade is a wartime extension of existing U.S. economic sanctions against the Iranian regime,” said James Kraska, professor of international maritime law and a visiting professor at Harvard Law School. In peacetime, he said, the sanctions were a “powerful tool to weaken the Iranian economy.” Now, he said, the blockade serves as a “kinetic expansion.”
General Caine’s announcement about the expanded naval blockade came one day after Treasury Secretary Scott Bessent announced “Operation Economic Fury,” an effort he called the “financial equivalent” of a bombing campaign. It includes secondary sanctions on institutions internationally, like banks, that have dealings with Iran.
The expanded blockade “marks a notable escalation by the United States,” said Ms. Kavanagh.
Still, she said, it is unlikely to significantly change Iranian calculations.
“For Iran, this war is existential and it is not going to cave easily or quickly,” she said. “Economic pressure may work over the very long term, but Trump seems too impatient for a deal to wait it out.”
World
Deadly shooting at historic tourist site leaves one dead, several injured as motive unclear
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A Canadian woman was shot and killed Monday, and several others were injured, before a gunman took his own life at Mexico’s popular Teotihuacan pyramids.
Mexican officials said that four people were wounded by gunfire and two others sustained injuries from falls. Among the injured were tourists from Colombia, Russia, and Canada, according to local government reports via The Associated Press.
A firearm, a bladed weapon, and live cartridges were found at the scene, Mexico’s Security Cabinet confirmed on social media.
The Pyramid of the Moon and the Pyramid of the Sun are seen along with smaller structures lining the Avenue of the Dead in Teotihuacan, Mexico, on March 19, 2020. A gunman killed a Canadian tourist and injured several other before taking his own life at the popular site, authorities said Monday. (Rebecca Blackwell/AP)
“Our thoughts are with their family and loved ones, and consular officials are in touch to provide assistance,” Canada’s foreign ministry said in a social media post.
Mexican President Claudia Sheinbaum wrote on social media that the shooting would be thoroughly investigated and that she was in contact with the Canadian Embassy.
TOURISTS TRAPPED IN PUERTO VALLARTA RECOUNT CARTEL RETALIATION AFTER EL MENCHO KILLED
Mexican President Claudia Sheinbaum speaks during her morning press conference at the National Palace in Mexico City on Jan. 5, 2026. (Raquel Cunha/Reuters)
“What happened today in Teotihuacan deeply pains us,” she wrote. “I express my most sincere solidarity with the affected individuals and their families.”
MAJOR DRUG LORD ‘EL MENCHO’ KILLED IN MEXICAN MILITARY OPERATION WITH U.S. INTELLIGENCE SUPPORT
Sheinbaum said she has instructed the Security Cabinet to investigate the events and provide all necessary support to the victims.
People visit the Pyramid of the Sun in the pre-Hispanic city of Teotihuacan near Mexico City, Mexico, on March 21, 2024, following the spring equinox. (Henry Romero/Reuters)
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“Personnel from the Secretariat of the Interior and the Secretariat of Culture are already heading to the site to provide assistance and accompaniment, along with local authorities,” she said. “I am closely following the situation, and we will continue to provide timely updates through the Security Cabinet.”
The pre-Hispanic city, located just outside Mexico City, was once one of the most significant cultural centers in Mesoamerica.
Fox News Digital has reached out to Canada’s foreign ministry for comment.
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