(TheProudRepublic.com) – In an assertion of untouchability bound to infuriate American patriots, Federal Reserve Chair Jerome Powell has defied President-elect Donald Trump’s calls for his resignation, defending the Fed’s crucial non-partisan role.
By maintaining his position, Powell emphasizes the importance of a data-driven approach to monetary policy, free of political influence.
Jerome Powell has firmly stated that he cannot be ousted or demoted by the president without cause.
This reinforces his stance that the Federal Reserve’s operations are conducted independently of political pressures.
Powell’s response to the possibility of resignation was a simple “No,” indicating a refusal to step down even under pressure from a new administration.
According to a CNBC report, the legal framework supports Powell’s claim, as the Banking Act of 1935 restricts removal of Fed governors to cases with cause.
This legal backing provides a difficult hurdle for any attempts to align the Fed’s policies with any administration’s preferences.
If President Trump attempts to strip Powell of his title, it could lead to a significant legal dispute, a scenario that exemplifies the ongoing political tensions.
Powell’s term as chair is set to expire in 2026, yet he can continue serving on the board beyond that.
Powell’s declaration that the presidential outcome will have “no effect” on the Fed’s policies in the near term underscores his commitment to an unbiased monetary policy.
He also clarified that any impact from Trump’s proposals on monetary policy remains too speculative at this point.
President-elect Trump has been vocal in his criticisms of Powell and the Federal Reserve’s policies, particularly regarding interest rate decisions.
Despite these tensions, Powell has not received any direct communications from the White House demanding his resignation.
Meetings between presidents and Fed chairs are part of historical precedence, though none are currently scheduled.
“Obviously, the president has the right to comment on the Fed, but I would worry that if it continues and intensifies, it could undermine confidence in the Fed and the market’s confidence in the Fed’s judgments,” Treasury Secretary Janet Yellen has said, cited by The American Banker.
As the Federal Open Market Committee (FOMC) lowered its benchmark interest rate by a quarter percentage point, Powell emphasized the committee’s careful approach to achieving a neutral rate without harming the job market or fostering higher inflation.
Copyright 2024, TheProudRepublic.com
