President Donald Trump has received a strong warning from the Supreme Court stating that there is one official beyond his power to dismiss.

In a decision regarding a different legal issue concerning Trump’s firing of two federal labor board members, SCOTUS highlighted that Federal Reserve Chair Jerome Powell cannot be removed by the president.

Powell, who has faced criticism from the president multiple times since his return to the White House for not reducing interest rates, is serving a fixed term scheduled to end in May 2026.

Trump has ruthlessly slashed roles and terminated staff locked into similar terms. While some have threatened legal action, Trump’s moves have largely been deemed legally sound.

‘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 ruling stated. 

This effectively guarantees that Powell will be able to serve the remainder of his term without the threat of being axed lingering over his head.

Back in April, Trump posted to Truth Social signaling he was disappointed with Powell, who he appointed back in 2017.

‘Powell’s termination cannot come fast enough,’ he wrote.

Trump had separately accused Powell of ‘playing politics’ with interest rates. He  also accused him of keeping rates low to help the election of President Joe Biden.

He was furious that Powell had voiced concerns about the impact Trump’s tariffs would have on the economy.

‘The level of the tariff increases announced so far is significantly larger than anticipated,’ Powell said at the time. 

‘The same is likely to be true of the economic effects, which will include higher inflation and slower growth.

‘Tariffs are highly likely to generate at least a temporary rise in inflation. The inflationary effects could also be more persistent.’

But days after he ranted against Powell, Trump denied he had any intention of terminating his position.

‘None whatsoever. Never did,’ Trump said. ‘The press runs away with things. No, I have no intention of firing him,’ Trump told reporters at the White House.

That didn’t stop him from revisiting his own criticisms of Powell – although in considerably softer form. 

‘I would like to see him be a little more active in terms of his idea to lower interest rates. It’s a perfect time to lower interest rates. If he doesn’t, is it the end? No, it’s not, but it would be good timing. It would be – which could have taken place earlier. But no, I have no intention to fire him.’

While Powell is immune from Trump’s whims, the Supreme Court ruled that other employees are not so fortunate.

The court’s order allows Trump to keep the two Democratic labor board members sidelined while they challenge the legality of their removal. 

Lawyers for Gwynne Wilcox, who was removed from the National Labor Relations Board, and for Cathy Harris, who was dismissed from the Merit Systems Protection Board, had argued that a ruling in favor of the Trump administration could undermine legal protections for Fed policymakers long seen as being insulated from presidential dismissal for reasons other than malfeasance or misconduct.

The two cases have been closely watched as proxies for whether Trump has the authority to fire officials at the Fed. 

The Federal Reserve Act of 1913 that created the nation’s third and still existing central bank stipulates that Fed officials may be dismissed only ‘for cause,’ not for political or policy disagreements. 

All seven Fed governors, including the system chair, are appointed by the president of the day and confirmed by the Senate. Trump is expected to soon nominate Powell’s successor.