Posted on 06/19/2019 7:53:58 AM PDT by reaganaut1
WASHINGTON—President Trump ratcheted up pressure on the Federal Reserve ahead of a major interest-rate decision, suggesting Tuesday he could consider demoting its chairman depending on the outcome.
“Let’s see what he does,” Mr. Trump said Tuesday when asked by a reporter if he wanted to demote Fed Chairman Jerome Powell, whom he nominated to the position in 2017.
Bloomberg News reported earlier Tuesday that, in February, the White House Counsel’s Office weighed the legality of stripping Mr. Powell of his chairmanship but leaving him on the Fed’s board of governors.
Prior to Mr. Trump’s remarks, the president’s top economic adviser, Lawrence Kudlow, declined to comment on the Bloomberg story but denied that the White House was considering whether to demote Mr. Powell.
Mr. Trump has called repeatedly on the Fed to lower interest rates to boost the economy, and spoke as central bank officials are considering whether to cut rates amid rising trade tensions and slowing global growth. The Fed is set to announce its decision Wednesday at 2 p.m. EDT, after the conclusion of a two-day policy meeting.
Legal experts say it is unclear whether Mr. Trump has the authority to remove Mr. Powell as chairman before his term as Fed chief expires in 2022. Earlier this year, Mr. Trump appeared to acknowledge that he didn’t believe he could, telling Mr. Powell in a phone call, “I guess I’m stuck with you,” The Wall Street Journal reported.
A Fed representative said that under the law the Fed board chair can only be removed for cause. No president has attempted such an action.
(Excerpt) Read more at wsj.com ...
Freepers who want an all-powerful president should remember that about half of the presidents in the future will be Democrats.
Who is your candidate for 2020?
NeverTrumper
Demoting someone is never the right thing.
If you have a problem employee, you should fire them no matter the consequences.
Keeping someone around who has been demoted is inviting sour grapes and poor performance from that person. A demoted employee will always live down to the expectations and will undermine the rest of your department.
“A Fed representative said that under the law the Fed board chair can only be removed for cause. “
Cause can be that the President thinks he is incompetent, malevolent, etc.
You’re right, but no one will listen.
This is the same Trump who was screaming at Yellen to raise rates because he thought the high stock market was helping Clinton. Monetary Policy is too important to be left to the politicians.
Your explanation was helpful, and a reminder that even the office of the president has it’s limits.
“A Fed representative said that under the law the Fed board chair can only be removed for cause.”
Go tell your boss he can only fire you for cause. Let me know how long it takes him to find one.
“Monetary Policy is too important to be left to the politicians.”
Not according to Jefferson, Adams, Washington, Madison, Hamilton, Jackson, etc...
It’s too important to be left to a foreign owned banks that profits from fleecing the nation by loaning it money, and who finance politicians who promise to spend drunkenly and borrow even more.
Here’s a novel idea: Eliminate the Fed. Reserve from our system, return to a Constitutional, non-fiat monetary system and this ‘issue’ (and a s*-load more) goes into the waste-bin.
Course, I’m sure to get some push-back from the Fed. lovers here on FR...
I imagine Trump would get extreme push back between that and going after the deep state. Push back like JFK got.
Only way to put an end to these shenanigans is to abolish the fed, go back to currency backed by gold and silver (lawful money) and end the present income tax system and go to a lawful tax system-fair tax.
And before all the naybobs start on me maybe they’d like to think on this. Do any of the illegals in this country who are on welfare pay income tax? Do the welfare people pay any? Does anyone working for cash pay income tax? And I know quite a few who do work for cash.
They all will pay tax under the fair tax-including the GD SCUM in politics.
So Trump was responding to a suggestion, not suggesting it himself. Obviously the questioner is unaware that the President cannot demote the Fed Chair. Powell is in there for four years unless dismissed for cause. And not kowtowing to presidential demands is not cause.
No it can't.
I didn't get approved by the Senate and there isn't a law stating I can only be fired for cause.
Cause isn’t defined sport. Cause can be incompetent decisions in the Judgement of the President. It can be that the President discerns an objective of harming his policy.
Go whine to Mitt
A worse idea is to have a Fed chairman that doesn't answer to the president and thus doesn't answer to the people, and because of that, they could potentially become corrupted by special interests and the Deep State.
No thanks.
Dream on. “For cause” in the words of the Fed spokesman is not defined. The same argument was made about Comey. Confirmed by the Senate for his 10 year term. They said he could only be removed for cause.
The President lost confidence in him due to his work product.
He is now, fired ex-FBI director Comey. LOL
High crimes and misdemeanors isn't defined either, sport. So by your guidelines Congress can impeach Trump simply because he told a lie at some time.
Trump has no grounds to remove Powell. If he tried to he would be overturned by the courts all the way up to the Supreme Court. And you can whine about that to whomever you want to.
They were wrong. There is no statute that says the FBI director can only be removed for cause. He is like a cabinet secretary or other presidential appointee. The chair of the Federal Reserve is different. By law the president can only remove him for cause, and the Supreme Court has limited his ability to remove some appointees like the Fed Chair.
Agreed. I for one would like to see their “books”.
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