Trump plans to dismiss Jerome Powell from the presidency of the Fed, confirms the White House

The US president expressed his annoyance with Powell for not lowering interest rates. The White House He already studies his possible dismissal, although this measure could attempt against the principle of independence of the agency.

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• Trump threatens to remove Powell, president of the Fed, before 2026.
• The economic advisor Kevin Hasett confirmed that from the government they analyze this option.
• The legality of removal depends on a pending failure in the Supreme Court.

The US president, Donald Trump, has reactivated his confrontation with Jerome Powell, director of the US Federal Reserve. (Fed) And this time the threat goes beyond words. According to official statements, the president He is seriously considering his dismissal before he finished his mandate in 2026.

This reflects several recently published reports, which indicate that the head of the National Economic Council, Kevin Hasett, confirmed at a press conference that “The president [Trump] And your team will continue studying the matter “ When asked about whether Powell’s removal is on the table.

A confrontation that dates back to 2018

Trump appointed a Powell In his first mandate, but the relationship deteriorated quickly. During 2018, the Fed Increased interest rates on several occasions, a policy that countered the vision of the president, who demanded lower rates to stimulate economic growth and face his commercial war strategy.

Since then, the president has publicly criticized Powell for “Do not do enough” and recently declared before the press: “I am not happy with him. I let him know, and if I want him to leave, he goes quickly, believe me.”

Although at that time he did not take formal measures, he now seems more determined. The presidential environment has begun to analyze legal ways to remove Powell, despite the fact that the law protects the directors of the Fed with a 14 -year mandate, and only allows their dismissal for “Justified cause.”

Legal obstacles and a broader political play

The Constitution It does not allow the president to remove the head of the Fed at will. To do it legally, Trump would need to prove a valid cause, such as undue behavior or a serious failure in fulfilling its functions.

However, the government is already questioning this limitation on other fronts. There is a pending case before the Supreme Court in which Trump seeks to eliminate similar restrictions to fire members of the National Board of Labor Relations and the Merit System Protection Board.

If the Court fails in its favor, that decision could pave the way to justify Powell’s dismissal too. In a recent event at the Chicago Economic Club, Powell commented on the matter: “That case is very commented. I don’t think that failure applies to the Fed, but I don’t know. It is a situation that we follow closely.”

Internal warnings and rising tensions

Meanwhile, warnings arise from the cabinet. The secretary of Treasure, Scott Besent, would have internally alerted that Powell’s dismissal could unleash a collapse in financial markets, as revealed two sources with direct knowledge of the conversations.

However, Trump seems to be ignoring these warnings. Its frustration increases as the Fed keeps interest rates unchanged, despite the pressures of the White House to cut them.

Nearby sources say that the president has even begun to shuffle possible replacements. In March, he held a meeting at his Mar-A-Lago residence with Kevin Warsh, former governor of the Fed, To discuss the possibility. However, The latter would have advised not to interfere with Powell’s mandate.

Despite that recommendation, the idea has not been ruled out. According to him Wall Street Journalpeople close to Trump put Powell’s departure at the beginning of March this year again.

Risks to the economy and worrying precedents

Of concrete, The dismissal of Jerome Powell would break a key institutional precedent: the independence of the Federal Reserve in front of the Executive Power.

The attempt to remove the president of the Fed For political reasons, it could undermine investors’ confidence and destabilize global financial markets.

In an uncertain economic context and with monetary policy in the center of the debate, this Trump offensive opens a new stage of confrontation between the White House and the most powerful central bank in the world.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

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