(TheRedAlertNews.com) – Despite his categorical victory in the 2024 election, President-elect Donald Trump is already facing a major hurdle in his fight for the ordinary American, as Federal Reserve Chair Jerome Powel claims that a president firing him is “not permitted under the law.”
Powel’s declaration has been interpreted by the mainstream media as a sign that he stands his ground, asserting that presidential pressure will not force his resignation.
Pro-left news outlets point out that Powell insists on the Federal Reserve’s independence amidst the swirling tides of political turbulence.
His response came after speculation that President-elect Trump might seek to impose his agenda on the Federal Reserve Board.
Assertions that he could not be ousted or demoted without cause emphasize the Fed’s legal standing.
“No,” Powell replied decisively when asked if he would resign under pressure.
He added that a president forcing him to resign was “not permitted under the law.”
Under the Banking Act of 1935, Fed governors may only be removed for cause.
Yet, ambiguity about removing the chair might lead to legal challenges if Trump attempts to strip titles from Powell, CNBC notes in a report.
As the Federal Open Market Committee (FOMC) adjusts interest rates, Powell emphasizes its neutral economic approach.
Trump’s criticisms cast a shadow of uncertainty over the economy’s stability.
Powell stated that the president’s election outcome would not affect the Fed’s near-term policies, further reinforcing its independence.
However, his comments reveal a commitment to nonpolitical monetary policy.
“I don’t think I should be allowed to order it, but I think I have the right to put in comments as to whether the interest rates should go up or down,” Trump has commented.
The FOMC continues its careful approach to interest rates, balancing economic growth with inflation concerns.
As Trump seeks greater influence, the world watches how this battle of wills might reshape monetary policy.
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