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Trump Signals Plan to Oust Fed Chair Powell but Publicly Downplays It

The review of a $2.5 billion Fed headquarters overhaul has supplied the leverage for the latest ouster discussions.

While Powell has said that the President cannot fire him, legal experts differ.
U.S. President Donald Trump looks on as Jerome Powell speaks at the White House in Washington, U.S., November 2, 2017. REUTERS/Carlos Barria/ File Photo
An eagle tops the U.S. Federal Reserve building's facade in Washington, July 31, 2013. REUTERS/Jonathan Ernst/File Photo
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Overview

  • In a private July 15 Oval Office meeting, Trump polled Republican lawmakers on firing Powell and showed a draft ouster letter to gauge support.
  • He publicly denied imminent plans to remove Powell, saying dismissal would only be warranted in cases of fraud.
  • Powell asked the Fed’s inspector general to investigate cost overruns on its $2.5 billion headquarters renovation project.
  • Stocks dipped when Treasury yields rose on news that Trump was considering Powell’s removal.
  • Legal experts warn that the Federal Reserve Act protects Powell from removal except for cause, making any dismissal subject to high-stakes court battles.