President Trump has been vocal in his criticism of Fed Chair Jerome Powell for not cutting interest rates. This ongoing dissatisfaction could lead to Trump’s attempts at a potential firing.
The legality of Trump’s authority to fire Powell remains uncertain. The Federal Reserve Act specifies removal is permitted only for ’cause’, leaving potential conflicts in future scenarios.
If Trump were to succeed in firing Powell, it could reshape the Fed’s leadership dynamics significantly. However, Powell’s legal challenges against such a firing would complicate the situation.
Leave a Reply