The US President’s threat to fire Federal Reserve Chair Jerome Powell has been met with signals from recent court rulings. The reason behind this move could be either cost overruns or interest rates, but some argue that it is a personal attack on the Fed chairman. Recent decisions made by the Supreme Court have signaled that Trump may not care about what the law says.
The Federal Reserve Act of 1913 states that Trump cannot fire Powell except for “cause.” However, some experts claim that this assessment ignores the current legal realities. The Supreme Court has shown a willingness to override lower court rulings in favor of the President, even when it means disregarding established precedent.
In 2020, the Court tweaked the 1935 ruling in Humphrey’s Executor v. United States, which allowed Trump to fire officials without “cause.” This decision was made on an emergency basis without full briefing and oral argument. The majority then claimed that they did not ultimately decide whether the firings fell within the exceptions.
However, many experts argue that this is a lack of explanation for its decision-making process. When the Court acknowledged that its analysis posed a problem for Powell, it seemed to recognize Trump’s interpretation of its ruling. The Court also failed to explain why it decided to give special treatment to the Federal Reserve.
In essence, the Supreme Court has shown itself to be willing to set aside established precedent in favor of the President’s desires. If Trump were to fire Powell and that decision made its way to the Court, it is likely that the majority would side with him regardless of what the law says. Ultimately, it comes down to the whim of the President rather than a binding interpretation of the Constitution.
Source: https://www.thebulwark.com/p/if-trump-tried-to-fire-federal-reserve-chair-jerome-powell-supreme-court