Particle.news
Download on the App Store
19 ARTICLES
·
last wk.

Trump's Push to Remove Fed Chair Powell Escalates Tensions Over Central Bank Independence

President Trump’s threats to fire Jerome Powell and demands for rate cuts intensify concerns about Federal Reserve autonomy and economic stability.

Image
Image
Image
“I strongly hope that we do not move ourselves into an environment where monetary independence is questioned,” said Chicago Fed President Austan Goolsbee.

Overview

  • President Trump declared that Federal Reserve Chair Jerome Powell’s 'termination cannot come fast enough,' escalating his criticism of Powell’s monetary policy decisions.
  • The White House is reportedly exploring legal avenues to remove Powell, challenging the precedent that Fed chairs can only be dismissed 'for cause' under a 1935 Supreme Court ruling.
  • Fed officials, including Chicago Fed President Austan Goolsbee, warned that undermining the central bank’s independence could damage its credibility and destabilize financial markets.
  • Powell reaffirmed his commitment to serving his term through May 2026, emphasizing the Federal Reserve’s legal independence and resistance to political interference.
  • The standoff comes as Powell cautions that Trump’s tariffs are driving inflation risks, while Trump pressures the Fed to cut interest rates to offset economic impacts.