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
Venezuelan dissident Machado credits Trump for advancing freedom movement, dedicates Nobel to him
NEWYou can now listen to Fox News articles!
FIRST ON FOX: Venezuelan opposition leader María Corina Machado is crediting President Donald Trump for helping sustain Venezuela’s pro-democracy movement while dedicating her Nobel Peace Prize to him, telling Fox News Digital that he provided critical support at a moment when Venezuelans felt abandoned by the international community.
“I am absolutely grateful to President Trump for every gesture, every signal and every moment that he has stood with the Venezuelan people. I have watched it very closely, and I know what it has meant for those who are fighting to reclaim democracy and freedom in our country,” she stated.
“A free and democratic Venezuela is not only possible — it is closer than ever. And that free Venezuela is breathing louder than ever before,” Machado said, adding that her Nobel Peace Prize is also dedicated to Trump. “This Nobel Prize is symbolic of that fight for freedom and is dedicated to the Venezuelan people and to President Trump for showing what strong leadership looks like in the moments that matter most.”
EXPERT REVEALS WHAT IT WOULD TAKE FOR TRUMP TO DEPLOY TROOPS TO VENEZUELA: ‘POSSIBILITY OF ESCALATION’
Nobel Peace Prize laureate Maria Corina Machado waves at the Grand Hotel in Oslo, Norway, early Thursday, Dec. 11, 2025. (Lise Åserud/NTB Scanpix via AP)
An official familiar with the matter told Fox News Digital that Machado hopes to visit the U.S. and meet the president to formally honor him for what she views as his support for the Venezuelan people.
Machado’s remarks come as she re-emerged publicly in Oslo, Norway, after spending 11 months in hiding. After a brief detention during an anti-government protest in Caracas, she went underground as pressure from the Maduro government intensified.
Her return to the public eye coincided with the Nobel Peace Prize ceremony, where her daughter, Ana Corina Sosa, accepted the award on her behalf. The Associated Press reported that Machado waved to cheering supporters from a hotel balcony — her first public appearance in nearly a year.
SCHUMER ACCUSES TRUMP OF PUSHING US TOWARD ‘FOREIGN WAR’ WITH VENEZUELA
The daughter of the Nobel Peace Prize laureate, Ana Corina Sosa, accepts the award on behalf of her mother, Venezuelan opposition leader Maria Corina Machado, during the Nobel Peace Prize ceremony at Oslo City Hall, Norway, on Dec. 10. (Ole Berg-Rusten/NTB Scanpix, Pool via AP)
Machado was barred from running in the 2024 presidential election despite winning the opposition primary by a wide margin, a move that drew strong criticism from Western governments.
Roxanna Vigil, a fellow at the Council on Foreign Relations, told Fox News Digital that Machado remains “the most popular political figure in Venezuela,” adding that she secured “over 90% of the vote” in the opposition primary before being blocked by Maduro. “She became a real threat… and so they disqualified her from running,” Vigil said. Machado ultimately endorsed Edmundo González, who went on to win the election.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Venezuelan opposition leader Maria Corina Machado addresses supporters at a protest against President Nicolas Maduro in Caracas, Venezuela, Thursday, Jan. 9, 2025, the day before his inauguration for a third term. (AP Photo/Ariana Cubillos)
Machado ultimately endorsed González, who was widely regarded by independent tallies of the result as having won the 2024 election, but who did not assume the presidency after Venezuela’s official National Electoral Council, controlled by Maduro allies, declared Nicolás Maduro the winner and inaugurated him for another term.
Machado has signaled she intends to return to Venezuela when conditions allow and continues to call for a peaceful transition away from Maduro’s rule.
World
Residents emerge in DR Congo’s tense Uvira after M23 rebel takeover
A cautious calm has settled over the eastern Democratic Republic of the Congo (DRC) city of Uvira in South Kivu province, as residents begin emerging from their homes following its capture by M23 rebels.
The capture earlier this week threatens to derail a United States-brokered peace agreement, signed with much fanfare and overseen by President Donald Trump a week ago, between Congolese and Rwandan leaders, with Washington accusing Rwanda on Friday of igniting the offensive.
list of 2 itemsend of listRecommended Stories
Regional authorities say at least 400 civilians, including women and children, have been killed in the violence between the cities of Bukavu and Uvira, both now under M23 control.
Al Jazeera is the only international broadcaster in Uvira, where correspondent Alain Uaykani on Saturday described an uneasy calm in the port city on the northern tip of Lake Tanganyika, which sits directly across from Burundi’s largest city, Bujumbura.
Uaykani said government and allied militias, known as “Wazalendo”, which had been using the city as a headquarters, began fleeing even before M23 fighters entered.
Residents who fled as the Rwanda-backed group advanced have begun returning to their homes, though most shops and businesses remain shuttered.
“People are coming out, they feel the fear is behind them,” Uaykani said, though he noted the situation remains fragile with signs of intense combat visible throughout the city.
Bienvenue Mwatumabire, a resident of Uvira, told Al Jazeera he was at work when fighting between rebels and government forces broke out, and he heard gunshots from a neighbouring village and decided to stop, but said that “today we have noticed things are getting back to normal.”
Baoleze Beinfait, another Uvira resident, said people in the city were not being harassed by the rebels, but added, “We will see how things are in the coming days.”
M23’s spokesperson defended the offensive, claiming the group had “liberated” Uvira from what he called “terrorist forces”. The rebels say they are protecting ethnic Tutsi communities in eastern DRC, a region that has seen fighting intensify since earlier this year.
The offensive, which began on December 2, has displaced more than 200,000 people across South Kivu province, according to local United Nations partners.
Rwanda accused of backing rebels
South Kivu officials said Rwandan special forces and foreign mercenaries were operating in Uvira “in clear violation” of both the recent Washington accords and earlier ceasefire agreements reached in Doha, Qatar.
At the UN Security Council on Friday, US ambassador Mike Waltz accused Rwanda of leading the region “towards increased instability and war,” warning that Washington would hold spoilers to peace accountable.
Waltz said Rwanda has maintained strategic control of M23 since the group re-emerged in 2021, with between 5,000 and 7,000 Rwandan troops fighting alongside the rebels in Congo as of early December.
“Kigali has been intimately involved in planning and executing the war in eastern DRC,” Waltz told the UNSC, referring to Rwanda’s capital.
Rwanda’s UN ambassador denied the allegations, accusing the DRC of violating the ceasefire. Rwanda acknowledges having troops in eastern DRC but says they are there to safeguard its security, particularly against Hutu militia groups that fled across the border to Congo after Rwanda’s 1994 genocide.
The fall of Uvira has raised the alarm in neighbouring Burundi, which has deployed forces to the region. Burundi’s UN ambassador warned that “restraint has its limits,” saying continued attacks would make it difficult to avoid direct confrontation between the two countries.
More than 30,000 refugees have fled into Burundi in recent days.
The DRC’s foreign minister urged the UNSC to hold Rwanda accountable, saying “impunity has gone on for far too long”.
A report by the American Enterprise Institute’s Critical Threats project said Rwanda provided significant support to M23’s Uvira offensive, calling it the group’s most consequential operation since March.
Al Jazeera’s UN correspondent Kristen Saloomey said UNSC members were briefed by experts who noted that civilians in DRC are not benefitting from the recent agreements negotiated between Kinshasa and Kigali.
More than 100 armed groups are fighting for control of mineral-rich eastern DRC near the Rwandan border. The conflict has created one of the world’s largest humanitarian crises, with more than seven million people displaced across the region.
The M23 group is not party to the Washington-mediated negotiations between DRC and Rwanda, participating instead in separate talks with the Congolese government hosted by Qatar.
World
Video: Deadly Storm Causes Massive Flooding Across Gaza
new video loaded: Deadly Storm Causes Massive Flooding Across Gaza
By Jorge Mitssunaga, Nader Ibrahim and Saher Alghorra
December 12, 2025
-
Alaska7 days agoHowling Mat-Su winds leave thousands without power
-
Texas7 days agoTexas Tech football vs BYU live updates, start time, TV channel for Big 12 title
-
Ohio1 week ago
Who do the Ohio State Buckeyes hire as the next offensive coordinator?
-
Washington4 days agoLIVE UPDATES: Mudslide, road closures across Western Washington
-
Iowa6 days agoMatt Campbell reportedly bringing longtime Iowa State staffer to Penn State as 1st hire
-
Miami, FL6 days agoUrban Meyer, Brady Quinn get in heated exchange during Alabama, Notre Dame, Miami CFP discussion
-
Cleveland, OH6 days agoMan shot, killed at downtown Cleveland nightclub: EMS
-
World5 days ago
Chiefs’ offensive line woes deepen as Wanya Morris exits with knee injury against Texans