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Donald Trump's recent statement claiming that Federal Reserve Chair Jerome Powell will leave his job if Trump asks him to has sparked controversy. Trump expressed dissatisfaction with Powell's handling of interest rates, calling him "too late" in his actions. However, the White House has defended the Fed's independence, emphasizing that economic decisions should be data-driven, not politically motivated.

*Key Points:*

- *Trump's Demand*: Trump publicly called for Powell's removal, citing poor monetary decisions, particularly regarding interest rates.

- *White House Response*: The White House has treaded carefully, reiterating respect for the Federal Reserve's independence and stating that Chair Powell was nominated and confirmed to lead without political interference.

- *Legal Standpoint*: A Fed Chair can only be removed "for cause," typically meaning serious misconduct or incapacity, not just policy disagreements.

- *Powell's Term*: Powell's term as Chair runs until May 2026, and he has signaled his intention to serve the full term, making decisions based on economic needs rather than political pressures.

- *Potential Replacement*: If Trump were to return to office, potential candidates to replace Powell include Kevin Warsh, a former Fed Governor known for his conservative monetary views ¹.