Posted on 11/28/2018 1:28:02 PM PST by SeekAndFind
In recent weeks, Trump criticized Federal Reserve Chairman Jerome Powell several times. He doesn’t like that Powell is leading the Fed to raise interest rates.
Past presidents avoided such comments so they wouldn’t appear to be interfering. But Trump doesn’t care about appearances.
The Fed is somewhat insulated from electoral politics. The chair and board members have fixed terms. Its composition changes slowly... but it doesn’t have to.
Tucked away deep inside the Fed’s founding law is a provision Trump could use to completely rebuild the Federal Reserve Board of Governors.
Markets should pay attention. I don’t think they are.
A common perception, even among Fed experts, is that presidents can’t fire the chair and board of governors once they take office. They’re thought to be like the Supreme Court in that regard, although they don’t serve for life.
But that’s not quite correct.
The Federal Reserve Act doesn’t explicitly give the U.S. president power to fire the Fed board members. But section 10 has a mysterious little phrase indicating it’s at least possible.
“…thereafter each member shall hold office for a term of fourteen years from the expiration of the term of his predecessor, unless sooner removed for cause by the President.”
That’s all it says on the subject, as far as I can tell. The Act doesn’t define what the word “cause” would entail. But Congress clearly thought the U.S. president should be able to remove board members before their terms expire, under certain conditions.
This legislative time bomb has been lurking in there for decades. Now we have a president who loves exercising unilateral power in ways his predecessors did not.
(Excerpt) Read more at forbes.com ...
RE: The Dow went up 617 points today after Chairman Powell’s remarks about interest rates. The market is happy, and Trump should be happy. I am.
That is something to be concerned about.
It simply tells us that ONE PERSON has the power to influence the investments of tens of millions of Americans.
NOT HEALTHY.
If any President could get rid of or neuter the Fed, it would be Donald Trump.
The problem with knowing the malfeasance, deception, muckraking history of this creator of funny money, is that once informed, it becomes life preserving to see that the Fed is put out of existence. It has done so much harm and nowhere in the Constitution is there any mandate for a Fed, a Central Bank. In fact, more than half of American history warned against its creation.
And here we are.
“He is in government and as such, his powers are ( and should be ) LIMITED by LAW.”
Trump IS the executive branch by LAW-The constitution. The reasons why we have elections. He can fire every last one of the corrupt public sector union apparatchiks that voted for hillary and should—Every clinton, bush and o’muslim holdover.
I think “Jerome” blinked big-time a couple of hours ago. Trump has him by his balls., or so it would seem. DJA moved up $617. (2.50%) on the news. Now he needs to drag Mary Bera, the GM CEO, out and flay her in front of the public. Maybe the GM Board will kiss her good-bye!
RE: Right now, the Fed Chairman unofficially answers to the Treasury.
I don’t think so.
Jerome Powell does not answer to Steve Mnuchin.
The U.S. Treasury controls the printing of money in the United States. However, the Federal Reserve Bank has control of the money supply through its power to create credit with interest rates and reserve requirements. Since credit is the largest component of the money supply by far, colloquially people talk about the Federal Reserve increasing the money supply as printing money.
So, it can even be said that the Treasury DEPENDS on the Fed before it can print.
EXACTLY!
FTA "But Trump doesn’t care about appearances.
Because he comes at this, not from the angle of a politician, but as a developer.
RE: He can fire every last one of the corrupt public sector union apparatchiks that voted for hillary and should—Every clinton, bush and o’muslim holdover.
Yes, but here are some he cannot fire -— The VP, The Judges of the courts, and of course — the big question — The Fed Chairman?
An honest audit of the Federal Reserve would be the end of the Federal Reserve.
That’s why their won’t be an audit.
I agree that Fed interest rate pronouncements have an out-sized effect on Wall Street. But that probably says more about Wall Street than the Fed.
Yes. The Fed lowered the rate unprecedentedly and kept it low throughout the Obama presidency and has been raising it repeatedly and fast during the Trump Administration. Very suspicious. It looks like a free traitor rebellion driven by foreign interests against the U.S.A.
The key word there is “unofficially”.
On the organization chart he does not. But the reality is they take orders from the Treasury.
Full disclosure: This information comes from a professor that used to work for the San Francisco Fed and he clued me in to the realities of what goes on over there in the Bablyon on the Potomac.
I think Mr. Trump might be capable of multitasking. If he can fix the Fed, why not? a
The FED rolled over on interests rates today...I’m sure Trump is pleased.
...
I know I am. The Fed has been increasing the money we’ve had to pay on the Obama debt and slowing down the economic recovery. If they keep raising rates they’ll put us in recession as they’ve done in the past without ever being held accountable.
It’s always cute when people make up misspellings of government.
Between 1790 and 1913 the inflation rate was -20%. Since then money has been devalued by 2450%. All due to the Federal Reserve.
“It simply tells us that ONE PERSON has the power to influence the investments of tens of millions of Americans.”
Putting it that way gives one pause, to say the least.
Not to mention the fate of pension and individual retirement funds.
Seems that the law says the President can fire the fed chairman for cause. Since “For cause” was not defined by congress it means whatever the President determines it means.
If Congress has a problem with it they can amend the law.
But until they do, The President can sack the whole fed governing board.
Never forget that Obama fired Alan Greenspan and replaced him with Janet Yellen because she was a “dove” on interest rates. The Media liars will never remind you of this.
Powell recently suggested a slowing of rate increases.
Yes, save the VP. He can get rid of that deep-state rino in 2020, if we make it that far.
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