President Donald Trump’s April 2026 statements threatening to remove Jerome Powell from the Federal Reserve Board of Governors if he remained after the May 15 chair term expiration represent the dominant catalyst shaping trader sentiment on attempts to oust the central banker. Powell has indicated he intends to serve out his governor term through 2028 pending Senate confirmation of a successor and resolution of a Justice Department criminal inquiry into headquarters renovations, a probe critics view as leverage for lower rates. These tensions test statutory limits on presidential removal authority, with potential implications for monetary policy independence, Treasury yields, and Fed funds rate expectations. Key near-term developments include Senate Banking Committee action on nominees such as Kevin Warsh and any related litigation.