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Trump says he can fire Fed's Powell; it's not that simple
Source: Reuters
BUSINESS NEWS JUNE 26, 2019 / 9:01 AM / UPDATED 39 MINUTES AGO
Trump says he can fire Fed's Powell; it's not that simple
Trevor Hunnicutt, Ann Saphir, Howard Schneider
6 MIN READ
NEW YORK/SAN FRANCISCO/WASHINGTON (Reuters) - U.S. President Donald Trump accused Federal Reserve Chairman Jerome Powell on Wednesday of doing a “bad job” and “out to prove how tough he is,” but any move to oust him would likely touch off a legal fight with big repercussions in financial markets as well.
Trump’s renewed criticism of Powell for not lowering interest rates to help the United States compete against China, delivered in an interview on Fox Business Network, was the latest in a series of attacks that started only months after Trump made him Fed chief in early 2018.
“I have the right to demote him. I have the right to fire him,” Trump said in the interview on Wednesday, adding that he had “never suggested” doing so.
The Federal Reserve Act says a president can only remove a Fed chair “for cause.” Historically the courts have not interpreted that to include policy differences.
“I think the law is clear that I have a four-year term, and I fully intend to serve it,” Powell said after the Fed’s June policy-setting meeting.
-snip-
Trump says he can fire Fed's Powell; it's not that simple
Trevor Hunnicutt, Ann Saphir, Howard Schneider
6 MIN READ
NEW YORK/SAN FRANCISCO/WASHINGTON (Reuters) - U.S. President Donald Trump accused Federal Reserve Chairman Jerome Powell on Wednesday of doing a “bad job” and “out to prove how tough he is,” but any move to oust him would likely touch off a legal fight with big repercussions in financial markets as well.
Trump’s renewed criticism of Powell for not lowering interest rates to help the United States compete against China, delivered in an interview on Fox Business Network, was the latest in a series of attacks that started only months after Trump made him Fed chief in early 2018.
“I have the right to demote him. I have the right to fire him,” Trump said in the interview on Wednesday, adding that he had “never suggested” doing so.
The Federal Reserve Act says a president can only remove a Fed chair “for cause.” Historically the courts have not interpreted that to include policy differences.
“I think the law is clear that I have a four-year term, and I fully intend to serve it,” Powell said after the Fed’s June policy-setting meeting.
-snip-
Read more: https://www.reuters.com/article/us-usa-trump-fed/trump-says-he-can-fire-feds-powell-its-not-that-simple-idUSKCN1TR1SU
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