Can the President Fire Powell? How Trump and the Fed Chair May Go to Battle. Powell is indicating he wouldn’t go down without a fight if Trump tries to remove him. How a battle could shake out.
https://www.barrons.com/amp/articles/trump-fire-fed-chair-powell-bbeb3341
“.,.. Having a say in interest rate decisions and flat out firing the sitting chair of the Fed aren’t the same, but if Trump wanted to remove Powell, he would have a long battle ahead of him.
To start, Trump may have to find “cause,” or prove Powell’s inefficiency, neglect of duty, or malfeasance in office, according to a 1930s Supreme Court ruling on criteria for removing an FTC commissioner.
“It would have to go through an executive Judiciary Committee, so they would have to appoint a special counsel before the Senate to determine whether or not the chairman, Jerome Powell, did in fact breach any of his duties in his role as chairman,” Morgan said.
In a statement to Barron’s, Trump-Vance Transition Spokeswoman Karoline Leavitt said that Trump will begin making decisions on who will serve in his second administration soon, and those decisions will be announced when they’re made.
Some financial executives don’t think it will happen. Shmuel Shayowitz, president of mortgage bank Approved Funding, said he doesn’t believe Trump will try to fire Powell because of the uncertainty it would bring to the markets. With Powell’s term ending in 2026, Shayowitz said it’s likely the President-elect will wait to replace Powell, “without ruffling any feathers.”
“I think he’s just trying to influence him a little bit and maybe telegraph to the market what he thinks and that he wants interest rates to be lower, quicker,” Shayowitz said.
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