The Federal Reserve Chair can only be removed "for cause," which generally means misconduct, neglect of duty, or malfeasance, not simply policy disagreements. This protection is established by the Federal Reserve Act and reinforced by a landmark 1935 Supreme Court decision, Humphrey's Executor v. United States, which limits the President's power to dismiss members of independent agencies before their terms expire
. Neither the President nor Congress can dismiss the Fed Chair before the end of their term without cause. The Chair serves a four-year term as one of the seven governors on the Federal Reserve Board, whose members have staggered 14-year terms and can only be removed for cause
. Although there is no direct legal precedent of a President firing a Fed Chair, and the issue remains legally untested, any attempt to remove the Chair would likely result in a court battle, potentially reaching the Supreme Court. The current legal environment is uncertain, as some recent Supreme Court cases and ongoing litigation could influence the scope of presidential removal power over independent agencies, but the Fed's independence is widely supported in Congress and historically protected
. In practice, the President can only fire the Fed Chair if there is proven cause, such as misconduct, and not merely due to disagreements over monetary policy. The Chair has stated that removal is "not permitted under the law" and that he would not resign if asked by the President
Summary:
- The Fed Chair can only be fired "for cause" (misconduct or similar), not for policy disagreements.
- The President cannot remove the Chair at will before the term ends.
- Any attempt to fire the Chair would face legal challenges and likely go to the Supreme Court.
- The Chair has stated he would not resign if asked to step down by the President.
Thus, effectively, no one can fire the Fed Chair without cause, and the President's power to do so is highly restricted and untested in court
