Trump's Struggle With the Federal Reserve: Can He Dismiss Jerome Powell?
President Trump has considered firing Federal Reserve Chair Jerome Powell, sparking financial market concerns. The legality of such a move is unclear, given the Federal Reserve's unique position and protection. Any attempt could lead to a legal battle, and Trump's unpredictable stance leaves uncertainty in the air.
President Donald Trump recently ignited speculation about possibly dismissing Federal Reserve Chair Jerome Powell. This news shook already nervous financial markets, following Trump's criticism of Powell and claims of fiscal mismanagement at a Federal renovation project as potential grounds for dismissal.
The Federal Reserve Act specifies removal for "cause," historically interpreted as misconduct rather than policy differences. No president has attempted to remove a Fed Chair, and such a move would very likely lead to a prolonged legal battle.
Despite initial reports of imminent firing, Trump has denied such plans. However, the subject remains on his agenda, with Senate and financial experts weighing in on the potential ramifications of such a precedent-setting action.
(With inputs from agencies.)
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