๐จ๐๐ข๐ฅ๐ฅ ๐ ๐๐ฎ๐ฉ๐๐ซ ๐๐ฎ๐ฅ๐ฅ ๐๐ฎ๐ง ๐๐๐ ๐ ๐๐ฒ๐๐ฅ๐ ๐๐ฆ๐๐ซ๐ ๐ ๐ข๐ง ๐๐๐๐ ๐๐ฆ๐ข๐ ๐๐๐๐๐๐ซ๐ฌ๐ก๐ข๐ฉ ๐๐ก๐ข๐๐ญ๐ฌ ๐๐ญ ๐ญ๐ก๐ ๐ ๐๐โ
The President of the United States does not have the legal authority to remove the Chair of the Federal Reserve, such as Jerome Powell, solely due to policy disagreements. Under current law, removal is only permitted "for cause," which typically involves misconduct or an inability to fulfill the roleโnot differences in economic philosophy or interest rate decisions.
Former President Donald Trump has openly criticized Powell, recently stating that his removal "can't come soon enough," citing frustration over the Fedโs reluctance to lower interest rates despite falling inflation and commodity prices. Although Trump has asserted he possesses the authority to dismiss Powell, this contradicts the established legal framework that protects the Federal Reserveโs independence.
The U.S. Supreme Court is currently reviewing the extent of presidential authority over independent federal agencies, a decision that could have significant implications for future interactions between the executive branch and the Fed.
Jerome Powellโs current term runs through May 2026, and he has indicated he will not step down if asked. He continues to underscore the importance of the Federal Reserveโs autonomy in guiding economic policy for long-term national benefit.
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