It seems that the relationship between American President Donald Trump and Federal Reserve Chairman Jerome Powell has reached a critical stage, with escalating disagreements over monetary policy and Trump's threats to dismiss Powell:
- According to the Federal Reserve Act of 1913, the Chairman of the central bank can only be dismissed for just cause, such as misconduct or neglect, and not for political disagreements.
- Powell has confirmed that he will not resign even if Trump asks him to, noting that his dismissal would be illegal in this case.
- There is a case pending before the Supreme Court that may affect this matter, as it considers the president's right to dismiss officials of independent agencies. If the court rules in favor of Trump, this could open the door for Powell's dismissal.