At the end of this week, US President Donald Trump once again expressed the idea of getting rid of Jero Powell, the chairman of the Federal Reserve (FED), whom he has long criticized for the fact that the central bank does not reduce interest rates. TASR reports this based on AFP and Reuters.
At the same time, Trump appointed Powella to office during his previous presidential period.
The President also criticized the Fed himself in his contribution on his social network, and stated that he did not understand why his currency committee still did not reduce interest rates. “Maybe, maybe, maybe I will have to change his mind about his throw -out? But no matter, his term of office will soon end,” said Truth Social in response to the Fed decision, which left the interest rates stable on Wednesday (18 6. 6.).
Post has been lawfully isolated
The post of President of the Fed has long been considered isolated from dismissal for various reasons, others such as illegal or incorrect proceedings. But Trump’s increasingly threatening by throwing away Powell can also test this legal assumption. However, the fact is that Trump almost as often often turns the course in such threats. “I will not release it,” he answered on June 12 to journalists in the White House.
Fed’s member Chris Waller, who was described as a possible Powella successor, said Friday (20 June) that due to declining inflation and signs of weakening in the labor market, the interest rates should be considered in July.
Waller also joined Wednesday’s unanimous decision to keep the rates at an unchanged level. This signals that none of the six Powell colleagues from the Board of Directors or five voting presidents of regional feds were not interested in changing interest.
Duties can increase prices
The Republican President, who was elected partly on the basis of the conviction of voters that he can alleviate high inflation, introduced a series of duties in the office. In accordance with expert opinions, Powell said some of these duties would be reflected in higher consumer prices.
Powell’s term of office will end in May 2026 and Trump is expected to nominate his successor in the coming months. The Supreme Court’s decision in May has alleviated the concerns that Trump could throw away Powell, as the judges described the Fed as “uniquely structured, quasi private entity”.
