Jerome Powell, the Federal Reserve Chair, is facing unprecedented scrutiny and criticism that threaten his tenure, which extends until May 2026. Recent attacks from notable figures including President Trump, FHFA Director Bill Pulte, and congressional allies accuse Powell of mismanagement and lack of leadership. While the law protects Powell from removal without cause, this political pressure creates uncertainty. Trump's campaign against Powell has heightened since his re-election, with calls for rate cuts amidst current interest rates of 4.25% – 4.5%. Pulte has initiated a congressional investigation into Powell's actions regarding the Fed’s headquarters renovation, framing it as deceptive conduct. Several Republican Senators are also demanding greater accountability from the Fed. In response, Powell has maintained a focus on data-driven policy, asserting his approach is needed to prevent inflation from destabilizing the economy. As political dynamics evolve, Powell faces a precarious situation, where legal protections provide some shielding but do not fully safeguard against political machinations aimed at reshaping the Fed's leadership.

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