US President Donald Trump has publicly criticized Federal Reserve Chair Jerome Powell, calling him a “major loser” and accusing him of being “Mr. Too Late.” This criticism comes amid concerns over the Fed’s decision to keep interest rates unchanged, which has led to a decline in stocks and a strengthening US dollar.
Trump’s comments have sparked debate among economists and financial experts, with some defending Powell’s independence and others questioning his ability to set monetary policies without interference from the president. The Federal Reserve Act of 1913 guarantees the central bank’s independence, allowing it to set interest rates without presidential or congressional influence.
The question remains whether Trump can fire Powell, who serves a four-year term as Fed chair. While Trump has threatened to remove Powell, a protracted court battle is likely to ensue if he attempts to do so. Even some Republicans are defending Powell’s right to remain in his post, with Senator John Kennedy saying that the president should not interfere with the Fed’s decisions.
Powell has stated that he plans to complete his term and will not be removed by the president, citing the illegality of such an action. His comments have been backed up by some former Fed governors, including Kevin Warsh, who advised Trump against trying to fire Powell. The debate over central bank independence is ongoing, with economists and experts weighing in on the importance of maintaining the Fed’s autonomy in setting monetary policies.
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Source: https://qz.com/trump-fire-jerome-powell-federal-reserve-law-1851777346