White House says Trump is determined to fire Fed’s Powell no matter the cost
Donald Trump wants Jerome Powell gone, and the White House is making it official. On Friday, his top economic adviser confirmed that removing the Federal Reserve chair is now a live option.
“The president and his team will continue to study that matter,” said Kevin Hassett, head of the National Economic Council, during a press briefing, when asked if Powell’s dismissal is on the table. That answer followed Trump’s latest outburst just one day earlier, where he openly threatened to fire Powell.
Trump told reporters:
“I’m not happy with him. I let him know it and if I want him out, he’ll be out of there real fast, believe me.”
The president nominated Jerome Powell to lead the Fed during his first term. Since then, Powell has raised interest rates, resisted Trump’s demands, and warned that the president’s trade policies could damage the economy.
Now, Federal Reserve governors are appointed for 14-year terms. Presidents can’t just fire them. To legally unseat Powell, Trump would have to prove “cause,” something the law reserves for misconduct or major failure.
Donald Trump with Jerome Powell. Official White House Photo by Andrea Hanks (Via Flickr)
Trump tests legal limits as frustration builds with Fed leadership
Trump’s administration is actively looking at how to bypass that rule. He’s already challenging similar restrictions in court. There’s a pending Supreme Court case where Trump is trying to remove limits on his power to fire members of the National Labor Relations Board and the Merit Systems Protection Board.
If the court sides with him, the ruling could give him legal cover to boot Powell too. Powell himself mentioned the case during a talk at the Economic Club of Chicago, saying:
“That’s a case that people talk about a lot. I don’t think that that decision will apply to the Fed, but I don’t know. It’s a situation that we’re monitoring carefully.”
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