No, Trump Can’t Fire Me, Fed Chair Jerome Powell Says

Barrons ^ | 3/12/19 | Connor Smith

[DeathBeforeDishonor1]

Federal Reserve Chairman Jerome Powell hasn’t said much about President Donald Trump’s frequent criticism of the central bank. But in a new interview, Powell made clear there’s one thing Trump can’t say to him: “You’re fired.”

“The law is clear that I have a four-year term,” Powell said on CBS’s 60 Minutes, in an interview that aired Sunday night. “And I fully intend to serve it.”

Pressed on whether Trump has the authority to fire him, Powell said, “no.”

Powell declined to answer questions about Trump’s unorthodox criticisms of the Fed, saying it wouldn’t appropriate for him to comment on any elected official.

“It’s very important that the public understand that we are always going to make decisions based on what we think is right for the American people,” Powell said. “We will never, ever take political considerations into effect.”

Previous presidents have avoided public criticism of the Fed to ensure the central back is not influenced by short-term political pressure. But Trump has not. In October, Trump said the Fed has “gone crazy.” Trump and Powell had an informal dinner at the White House in early February. Powell would not comment on their conversation.

The Fed has taken a patient approach in raising interest rates so far this year. In the past, Trump’s unprecedented criticisms mostly focused on higher interest rates and the tightening of monetary policy.

“Our interest-rate policy is in a very good place,” Powell said in the new interview.

[Darksheare]

Didn’t Obama fire some schmuck from the Fed?

[mindburglar]

Yes he can, for cause. I would call causing a recession, “cause”.

[thefactor]

The Fed is a private institution, if I recall. The President can not fire the head. I’m sure there are other things he can do.

[Drago]

Nope, Janet Yellen served her full 4 year term under Obama. President Trump should be proud of his economy if interest rates need to be raised, confirms full employment and rising wages. Main street before Wall Street...when did Wall Street become so concerned with “normal” interest rates? We have a long way to go before we get there...like 3 or 4 percent or more.

[MagnoliaB]

That’s fine, let Powell stay but fire the whole Federal Reserve.

[pepsionice]

If the Fed would come out with a slow path....say a half-point rise over one single year, then a full point over the second year, then we could get back to a ‘norm’. The Fed rate should resolve itself and get back to the 8-to-10 percent rate.

If people would go back review CD rates of the 1970s/1980s....it was normal to have 5 to 7 percent CD rates. That’s the norm, and we should be working toward that.

[Hostage]

End the Fed and send Powell packing.

[Pravious]

“The law is clear that I have a four-year term,” Powell said on CBS’s 60 Minutes, in an interview that aired Sunday night. “And I fully intend to serve it.”

Pressed on whether Trump has the authority to fire him, Powell said, “no.”

—

Arrogant dickhead.

[thoughtomator]

The Fed believes itself sovereign, and that the federal government is its subject.

[TheConservator]

The dirty little secret is that if the Fed were to let interest rates rise as high as 6%—by historical standards a very “normal” interest rate—the obligation to pay interest on our massive federal debt would require either massive cuts to entitlement programs, generating civil unrest and a likely depression, or hyperinflation. So they are going to try to keep interest rates no higher than they are now for as long as they can.

The eCONomy is based on CONfidence. When something happens to shake that confidence—as it inevitably will—and interest rates rise despite the Fed’s efforts to prevent it, all hell is going to break loose in this country. And then, folks will finally understand why racking up a massive federal deficit was and is a very, very stupid idea.

[DoodleDawg]

Didn’t Obama fire some schmuck from the Fed?

No.

[DoodleDawg]

Yes he can, for cause. I would call causing a recession, “cause”.

Causing it all by himself, huh? Quite an achievement. How does he do that?

[DoodleDawg]

Arrogant dickhead.

But honest.

[DoodleDawg]

So Powell believes he is a king or dictator and can raise interest rates to 50% if he wanted.

He can't. Powell is only one vote on the Fed Open Market Committee. Even of Powell was crazy, and he's not, the other members wouldn't go along with it.

[WKUHilltopper]

Yeah. Yeah, he can, pompous asswipe.

[bagster]

"...never, ever take political considerations into effect"

Shirley this genius meant to say "take...into account", being the Chairman of the Federal Reserve, and all.

[OrioleFan]

President Trump knows that last year was a demonstration by Powell that the FED can disrupt the markets in an election year.

[so_real]

“It’s very important that the public understand that we are always going to make decisions based on what we think is right for the American people,” Powell said.

There's the problem right there. They are going to do what they think is right for the American people. That is dramatically different than doing what the American people think is right, as our elected officials are mandated to do. We the People don't elect the leadership of this private bank. They don't represent us. They can (and arguably have) been weaponized against us. End the Fed.