Fed Chair Jerome Powell will sue Donald Trump if he tries to fire him. However, Trump already said he wasn’t planning on firing him.
“If the president were to succeed at this, that would mean every future chair is subject to removal at the whim of the president,” said former general counsel for the Federal Reserve Scott Alvarez who is Powell’s attorney.
Powell said the Federal Reserve’s chair can’t be tossed out simply because the Oval doesn’t like interest rate policy. Trump hired Powell himself at the start of his first term back in 2016. Then came 2018 and they clashed.
Trump wanted the Fed to lower interest rates, but Powell kept them high to keep inflation in check. That didn’t sit well with Trump. He reportedly even thought about firing Powell, and his frustration was no secret.
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The Fed chair told then-Treasury Secretary Steven Mnuchin that he’d legally fight if Trump tried to push him out. And he was dead serious about it. He called it “setting a dangerous precedent.”
Powell said recently that it was not permitted under the law.
But here’s the silly aspect. Trump has never said that he’s planning to fire Powell. SEC Chair Gary Gensler, yes. But Powell? No.
In fact, when he spoke to Bloomberg in June, Trump reportedly said he’d let the Fed chair “serve it out” as long as he was “doing the right thing.”
Trump criticized Powell during Biden’s reign, but it was more about Biden.
Some Trump advisors don’t like the idea of the Fed being “independent” and out of reach of the White House. They argue that the Fed’s independence has been blown out of proportion and that there’s nothing in the Constitution that says the Fed can’t answer to the president.
It might not be the right time to make a change due to the outrageous Biden-Harris inflation. However, the entire bureaucratic national bank system should blow up. No one knows what goes on there and they are unelected. An audit would be a good start.
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