Why Trump Shouldn’t Fire Jerome Powell — Yet | The American Spectator

Since President Trump took occupancy of the Oval Office for the second time this past January, one question that has continued to sit at the surface is whether he should fire Federal Reserve Chair Jerome Powell.

Let’s be honest — it’s tempting.

Powell’s handling of the early inflation surge during the Biden administration was, at best, slow-footed and confused. His now-infamous insistence that inflation was “transitory” delayed necessary action, and in doing so, arguably made the cure far more painful than it had to be. His leadership lacked clarity. His communication failed to anchor confidence. And yes, his decision to cut rates just ahead of the 2024 election was bad optics — it looked political, and it probably was.

So should Trump fire him? No. He shouldn’t.

Not because Powell deserves to stay — but because the long game matters more than the moment.

Powell’s term ends in May. Trump should let it expire on its own. Removing Powell now would unleash political and market chaos. It would reinforce the narrative that President Trump governs by grudge and impulse. Worse, it would risk undermining the one institution that, even with its flaws, still commands global financial reverence — the Federal Reserve.

Firing Powell would be a short-term political sugar high that leads to long-term instability. It would rattle markets, embolden critics, and send a dangerous signal to the world that U.S. monetary policy is now just another partisan tool.

And that brings me to what may be the more important questions: Who should lead the Fed next?

Whomever it is, they must not be a “yes man/woman” — to Trump, to Wall Street, or to media narratives. Nor should they be a reflexive low-rates dove looking to juice markets at the first sign of trouble. Rate cuts during inflation are great for markets, but terrible for consumers. You know — the people who live in the real economy, not the ones that live in an earnings call.

If there’s one lesson we should have learned, it’s this: the Fed’s job isn’t to protect stock tickers. It’s to protect purchasing power. That means resisting the urge to cut rates just because the Dow has the sniffles. Markets can, and should, fall sometimes. That’s not failure — it’s discipline.

Let’s not forget: a few months ago as the tariff war was ramping up, just as they did in Trump’s first term, markets took a hit — and we survived. In fact, we recalibrated, and the markets have returned to record levels.

Rate cuts are the primary tool the Fed uses to hamper inflation and spur economic growth. They should only be cut rates when inflation is truly under control, consistently — consistently — and not a moment before. The current fed-fund rate is still well below the 50-year average, consumer confidence remains strong, and while it was easy to get addicted to the lower cost of capital, seeing the price of everyday goods would be much more detrimental to the economy than fund rates between 4 and 4.5 percent for a little while longer.

So no, don’t fire Powell. But replace him when the time comes with someone strong. Someone conservative. Someone with backbone. Someone who can sit across from a Chief Executive and, when necessary, say: “No, sir.”

To those calling for a criminal investigation into Powell over the Fed’s building renovations and budget overruns — that’s a political stunt, not a policy solution. Alleging criminality requires proving intent: willful misconduct, corruption, or fraud. That’s a high bar, and it’s not likely to stick. Worse, imagine firing Powell now and then being forced by a court to reinstate him. That’s not just embarrassing — it’s destabilizing.

Look, I get it — D.C. appointments are weaponized. Conservatives have been the target of this vial overuse of power all too often, but we must resist the urge to take the same tactic.

We need strong conservative leadership at the Fed. But we also need restraint. So let the clock run out. Don’t hand the media another easy narrative. Let Powell limp to the finish line — and then bring in someone with steel in their spine, not sugar in their veins.

If Trump really wants to be the hero in this economic drama, he needs a villain. And for now, Powell fits the bill just fine.