President Trump has seized on the Federal Reserve's multibillion-dollar makeover as a possible avenue for finally ousting its politically independent chair, Jerome Powell.

Trump has for months criticized Powell over the Fed’s refusal to cut interest rates, a decision partially rooted in uncertainty surrounding the president’s tariffs. Trump has expressed his desire to remove Powell, whom he appointed during his first term, but the legality in which he could do so remains a key question.

With the Supreme Court signaling Trump would need a valid reason, the president has held back from terminating the central banker even as he doesn’t hesitate to eviscerate other agencies’ independence.

But Trump might now see his opening at the Fed.

Some $2.5 billion in renovations to the central bank’s headquarters in Washington have put Powell in the hot seat over management of the project, which has cost about $600 million more than initially expected. Asked Tuesday if the pricey updates are a fireable offense, Trump said, “I think it sort of is.”

Legal scholars say removing Powell over the renovations would be an uphill battle of its own. Powell could claim Trump didn’t have “cause” to terminate him, as required by federal law.

“If Trump removes Powell, and Powell does push back, I think he would say that this is a blatantly illegal and abusive use of the president's power,” said Todd Phillips, a law professor at Georgia State University.

Unlike some other independent agencies’ governing statutes, which expressly list out fireable offenses, like inefficiency, neglect of duty and malfeasance in office, the Federal Reserve Act does not. It merely states the president must have “cause.”

“It can't just be that the president doesn't like the tie that Jay Powell is wearing on a certain day,” Phillips said.

Still, Trump would be the first president in modern history to fire the Fed chair, making any theory untested.

“Can the president fire Jerome Powell? I’m........

© The Hill