Who Appointed Jerome Powell? The Full Story Behind the Fed Chair and Trump
It was a political moment that left many scratching their heads. On July 16, 2025, then-President Donald Trump voiced his bewilderment over Jerome Powell’s position as the Chair of the Federal Reserve.
"I was surprised he was appointed," Trump told reporters in the Oval Office. "I was surprised, frankly, that Biden put him in and extended him."
The irony? It was Trump himself who first appointed Powell as Fed Chair back in 2017. This apparent lapse in memory perfectly captures the turbulent and complex relationship between Trump and the man he once hailed as a "strong, committed, and smart leader."
Here’s the full story behind how Jerome Powell came to lead the Fed, and how his relationship with two presidents has shaped American economic policy.
How Is a Fed Chair Appointed?
The appointment of a Federal Reserve Chair isn't a simple decision. It's a carefully designed process meant to balance political oversight with the need for an independent central bank.
Here’s how it works:
- The President Nominates: The president chooses a nominee from the Federal Reserve Board of Governors for a four-year term as Chair. This nominee undergoes an extensive FBI background check, ethics reviews, and financial disclosures.
- The Senate Confirms: The Senate Banking Committee holds public hearings to grill the nominee on their qualifications, policy views, and potential conflicts of interest. If the committee approves, the nomination goes to the full Senate for a final confirmation vote.
This process was designed to insulate the Fed from short-term political whims while ensuring it remains accountable to the public.
Powell’s Rise: A Bipartisan Pick
Jerome Powell's journey to the Fed began long before Trump. In 2011, President Barack Obama nominated him to the Federal Reserve Board of Governors. In a strategic move to secure bipartisan support, Obama, a Democrat, paired Powell, a Republican, with Democrat Jeremy Stein—making Powell the first nominee from an opposition party since 1988. He was confirmed in 2012 and then reconfirmed in 2014 for a full 14-year term as a governor, set to last until 2028.
Powell’s resume was impressive:
- A law degree from Georgetown University, where he was editor-in-chief of the Georgetown Law Journal.
- Experience as Assistant Secretary and Under Secretary of the Treasury under President George H.W. Bush.
- Years in the private sector as a partner at The Carlyle Group.
The Trump Nomination: A Honeymoon in the Rose Garden
On November 2, 2017, President Trump stood in the Rose Garden and proudly nominated Jerome Powell to succeed Janet Yellen as Fed Chair. Trump praised Powell’s judgment and expertise, expressing confidence that he had "the wisdom and leadership to guide our economy through any challenges."
The Senate agreed. Powell was confirmed with overwhelming bipartisan support in an 84-13 vote and officially began his first term as Fed Chair on February 5, 2018.
From Praise to "Bonehead": The Relationship Sours
The cordial relationship didn't last. As the Fed raised interest rates throughout 2018 and 2019 to manage the economy, Trump’s frustration grew. His praise turned to public attacks, calling Powell a "bonehead," a "major loser," and a "knucklehead" for not cutting rates.
The criticism only intensified during Trump's second term, which began in 2025. He repeatedly demanded Powell's resignation and insisted that interest rates should be near zero. The attacks became so heated that in July 2025, Trump reportedly showed House Republicans a draft letter proposing Powell's termination, though he later walked back any immediate plans to fire him.
Biden’s Reappointment: A Vote for Continuity
In November 2021, President Joe Biden faced a choice: replace Powell or nominate him for a second term. Despite pressure from progressives to pick a different candidate, Biden chose continuity.
By reappointing Powell—a Republican chosen by his predecessor—Biden restored a long-standing tradition of keeping central bank leadership stable, regardless of party politics. He acknowledged the decision was unusual, asking, "Why am I not picking a Democrat?" His answer was that stability and independence at the Fed were paramount.
Once again, Powell sailed through the Senate confirmation, this time with an 80-19 vote, and was sworn in for his second term on May 23, 2022.
The Current Standoff: An Uncertain Future
With Powell's second term ending in May 2026, Trump has made it clear he will not be reappointed. Treasury Secretary Scott Bessent announced in July 2025 that a "formal process" to find a successor has already begun. The message is clear: Trump wants a Fed Chair who will slash interest rates immediately.
Several names have been floated as potential replacements, including former Fed governor Kevin Warsh and National Economic Council Director Kevin Hassett. Trump has stated he is considering "three or four" candidates who align with his economic agenda.
Can a President Fire a Fed Chair?
The tension has raised a critical question: can Trump legally fire Powell? Federal law states that Fed board members can only be removed "for cause"—a high bar that typically means misconduct, not a policy disagreement. Powell himself has been clear, stating that he would not resign if asked and that the law protects his position.
A 2025 Supreme Court ruling gave the president more power to fire the heads of some independent agencies but noted the Federal Reserve's "uniquely structured" nature might make it an exception. For now, the legal boundaries remain untested.
Why This Matters for Everyone
This clash isn't just political theater. The independence of the Federal Reserve is considered a cornerstone of the U.S. economy. Financial markets rely on the Fed to make data-driven decisions free from political pressure.
Analysts have warned that any move to undermine the Fed's independence could rattle global markets, potentially harming the U.S. dollar and the economy. The ongoing uncertainty has already created volatility, as investors watch the drama unfold.
Looking Ahead: The Future of the Fed
The saga of Trump and Powell highlights a fundamental tension in American governance: the balance between political leadership and independent institutions. Trump may have forgotten he was the one who appointed Powell, but the consequences of their fraught relationship will be remembered for years to come.
As Powell's term winds down, the choice of his successor will be a pivotal moment. The next Fed Chair will not only guide the U.S. economy but will also determine the future of the Federal Reserve's hard-won independence in an increasingly polarized world.