“Federal Reserve Chairman Jerome Powell said he intends to serve his full four-year term as head of the Federal Reserve, after President Trump asked White House lawyers earlier this year to explore options for removing him,” Bloomberg reports.
Said Powell: “I think the law is clear that I have a four year term, and I fully intend to serve it.”
“The White House explored the legality of demoting Federal Reserve Chairman Jerome Powell in February, soon after President Trump talked about firing him,” Bloomberg reports.
“The White House counsel’s office weighed the legal implications of stripping Powell of his chairmanship and leaving him as a Fed governor, the people said, in what would be an unprecedented move. A replacement would have to be nominated by Trump and confirmed by the Senate.”
Wall Street Journal: “President Trump is blaming the Federal Reserve for holding back the economy and stock market despite the central bank’s recent decision to do two things he wanted—halt rate increases and stop shrinking its asset portfolio. The president blasted the Fed and Chairman Jerome Powell at three meetings in the past week alone, telling Republican senators, supporters and staffers that if it wasn’t for the central bank’s past rate increases, economic output and stocks would be higher and the U.S. budget deficit would be rising less.”
“Mr. Trump also blamed Treasury Secretary Steven Mnuchin for recommending Mr. Powell for the top Fed job.”
“And he recalled a recent phone conversation he had with Mr. Powell, this person said. ‘I guess I’m stuck with you,’ the president recalled telling Mr. Powell.”
“In a precautionary move, Treasury Secretary Steven Mnuchin spent Sunday on the phone speaking with the chief executives of six of the country’s largest banks to avoid yet another market whiplash when Wall Street opens Monday,” CNN reports.
“The secretary… tried to get ahead of further market jitters following reports that President Trump was consulting advisers about whether he had the legal authority to fire Federal Reserve Chairman Jerome Powell.”
Axios: “It’s unclear Trump would have the legal authority to take such action. Such a move would also undermine international faith in the Fed.”
President Trump “said he expected Jerome Powell to be a cheap-money Fed chairman and lamented to wealthy Republican donors at a Hamptons fundraiser that his nominee instead raised interest rates,” Bloomberg reports.
“The Federal Reserve has raised rates five times since Trump took office, including twice this year under Powell. The president nominates the Fed’s chairman and other governors in Washington, but the agency is independent and historically frustrated presidents by raising interest rates without regard for politics.”
Taegan Goddard
Taegan Goddard is the founder of Political Wire -- which for more than two decades has been one of the nation's most influential political news sites.
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