Washington - Saba:
US President Donald Trump again floated the idea of firing Federal Reserve Chairman Jerome Powell on Friday evening, whom he has repeatedly criticized for his interest rate policies, which Trump is demanding be lowered.
“I don’t know why the Board won’t override (Powell). Maybe, just maybe, I’ll have to reconsider firing him. But in any case, his term is up soon,” Trump wrote in a lengthy post on Truth Social, criticizing the Fed’s approach.
He added: “I fully understand that my harsh criticism of him makes it difficult for him to make the right decision, which is to lower interest rates, but I’ve tried every possible way.”
Although Federal Reserve chairmen are traditionally immune from presidential removal except in cases of misconduct or gross negligence, Trump has repeatedly threatened to break this tradition on numerous occasions, raising legal questions about the possibility of removing Powell. However, Trump has consistently backed down from these threats, saying on June 12 of last year at the White House, "I'm not going to fire him."
On Wednesday, the Federal Reserve left interest rates unchanged at 4.25%-4.50%, citing expectations of slowing growth, rising unemployment, and rising inflation by the end of the year.
Powell's term ends in May 2026, and Trump is expected to nominate a successor in the coming months.
Concerns about the possibility of Powell's removal were eased after the Supreme Court ruled in May that the Federal Reserve is a "single, quasi-private entity," making it difficult for the president to directly interfere in its administration.
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