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Trump Intensifies Calls for Federal Reserve Chair Powell's Termination Amid Supreme Court Case

President Trump escalates calls for Jerome Powell's termination as legal battles over presidential powers regarding independent agencies heat up.

Overview

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President Trump has renewed his calls for Federal Reserve Chair Jerome Powell's removal, insisting his termination 'cannot come fast enough.' This comes as the Supreme Court deliberates a pivotal case concerning Trump's authority to dismiss officials from independent agencies, which could indirectly affect the Fed. Trump's grievances stem from Powell's reluctance to lower interest rates and his warnings regarding the inflationary impact of tariffs. The case at hand, concerning labor agency leaders, may redefine presidential powers over independent entities. Economists stress the importance of the Fed's independence, fearing unrest in financial markets if Trump's wishes are realized.

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President Trump's renewed call for Jerome Powell's termination was triggered by Powell's reluctance to lower interest rates and his warnings about the inflationary impact of tariffs.

By law, the president can only remove a Federal Reserve governor, including the Fed Chair, 'for cause.' A policy disagreement is unlikely to meet this legal standard.

The Supreme Court case could redefine presidential powers over independent entities like the Federal Reserve, indirectly affecting its independence. Economists fear market instability if these powers are expanded.

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