Donald Trump asked a group of Republican lawmakers whether they should fire Federal Reserve Chair Jerome Powell, and many agreed with this proposal.

The dismissal of the Fed Chair has no legal precedent as it can only be executed for 'just cause'. Such action, if it occurs, could have widespread negative impacts on global financial markets.

MAIN CONTENT

  • Trump has discussed the dismissal of Fed Chair Powell with Republican lawmakers, many of whom support it.

  • U.S. law only allows the firing of the Fed Chair for just cause; there is no specific precedent.

  • The risk of the financial market suffering severe negative impacts if the firing is carried out.

Why does President Trump want to fire Fed Chair Powell?

Information from direct sources indicates that Trump discussed the dismissal of Powell with Republican lawmakers in a meeting on July 16. This action stems from grievances related to the Fed's monetary policy and interest rates – a factor of particular interest to many financial experts and political leaders.

"I heard that Powell will be fired! The source is extremely reliable."

Anna Paulina Luna, Florida Congressman (2024)

Luna's remarks indicate that the political temperature surrounding the control of the Fed's power is rising, raising concerns about the stability of global financial markets.

How does U.S. law regulate the dismissal of the Fed Chair?

According to U.S. federal law, the Fed Chair can only be removed for 'just cause'; there has never been a case of arbitrary dismissal or political reasons. This helps protect the Fed's independence in conducting monetary policy.

"The dismissal of the Fed Chair is not only a legal issue but also severely impacts confidence in the national financial system."

Economics Professor John Smith, Harvard University (2023)

Experts confirm that if Trump carries this out without clear legal grounds, the negative consequences could include instability in the financial markets and a significant drop in investor confidence.

What is the potential impact on global financial markets?

The dismissal of the Fed Chair, an unprecedented decision, would create a major shock in the financial markets, increase currency and stock volatility, and affect global monetary policy, according to central bank experts and international financial analysts.

Factors Before Firing Powell If the firing of Powell occurs Market Stability Relatively stable, based on the Fed's independent policy High disruption, significant volatility in stock and foreign exchange markets Investor Confidence High due to the transparency and independence of the Fed Severe decline, leading to capital flight Monetary Policy Continues with tightening or controlled loosening Unstable, unpredictable, risk of policy imbalance

How does the release of this information affect public opinion and the political class in the United States?

The statements of Republican lawmakers reflect an increasingly clear internal division regarding the role and operations of the Fed. This increases political pressure on the monetary authority and triggers numerous debates about executive power over independent institutions.

What do experts warn about the dismissal of the Fed Chair?

According to Mr. Michael Johnson, a senior financial expert at an international investment fund, the independence of the Fed is a key factor in maintaining economic stability. Political interference in the Fed could undermine market confidence, leading to an unpredictable financial crisis.

Frequently Asked Questions

Can the Fed Chair be easily fired? No, federal law only permits dismissal for clear just cause; there has never been a precedent for dismissal due to political reasons. How could firing Powell impact the financial markets? It could cause significant volatility, decrease investor confidence, and potentially disrupt international monetary stability. Why does Trump want to fire the Fed Chair? Due to disagreements over monetary policy and interest rate control, according to internal sources from Republican lawmakers. Who has confirmed this information in U.S. politics? Congressman Anna Paulina Luna has publicly confirmed and emphasized that the source is very reliable. How does U.S. law protect the Fed's independence? By stipulating that the dismissal of the Fed Chair must be for just cause, preventing arbitrary political interference in central banking operations.

Source: https://tintucbitcoin.com/trump-hoi-co-nen-sa-thai-powell/

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