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 ...
You really didn’t answer my question.
But here is another one for you.
Do you think it is wise to outsource one of the most important functions of Government (money creation) to a private entity?
The legitimate functions of the FR should be adsorbed by the Treasury Department.
KPMG's 2017 revenue was something like $26 billion dollars so whatever they make from their fed audits is a drop in their corporate revenue ocean. I highly doubt that they would risk their reputation by covering up wrongdoings at a customer as small as one of the federal reserve banks.
Read again. Some parts are a hybrid public-private enterprise but for practical purposes it's public.
Do you think it is wise to outsource one of the most important functions of Government (money creation) to a private entity?
No, and the Federal Reserve System isn't a private entity.
If you think it is tell me in which state it's incorporated?
Or do you think it's an LLC or partnership.
Exactly what legal structure do you think that it has?
Many of the member banks are publicly-owned and you can see exactly who has the stock. The other banks are privately owned and you can find out what you can find out.
All federally-chartered banks in a Fed region buy in, whether publicly or privately owned. This isn't hard.
Since its a public Organization (according to you), you won’t mind a complete audit of the Federal Reserve.
Including its policy decisions?
The main purpose of the Federal Reserve was to prevent depressions and it failed at that.
“Raponos has been a split decision at every level. I’m grateful that you’re here to settle it for us all.”
Don’t know what to say about your statement other than you’re clueless.
“Simple enough for you?”
Try not acting like a leftist punk.
No. That's not in the purview of an audit.
You want a review of public policy. In our system we do that via elections.
Well, if that's all you can say it's no wonder that you can't convince anyone.
“Well, if that’s all you can say it’s no wonder that you can’t convince anyone.”
I agree. One can’t convince someone who’s calcified.
You proved my point - the FR is all about power. You don’t want anyone looking under the hood.
Without having information the public can’t make sound decisions.
Does the FR lend money to foreign countries or other central banks?
The Federal Reserve is governed by people appointed by POTUS, whom we elect.
If you think Trump doesn't want people looking under the hood don't vote for him in 2020, but for now he appointed the man who could reveal everything, Jerome Powell.
Does the FR lend money to foreign countries or other central banks?
Not as far as I know.
The Fed executes some foreign exchange currency transactions on behalf of the Treasury Department but that's about it.
The Fed doesn't lend money to foreign banks although they might deal with the US subsidiary of those banks.
What’s the problem? Jerome Powell was appointed to the head Fed job by President Trump. And interest rates have been far too low for far too long. Long past time for the Prime Rate to be in it’s historical average area of 8-9% and the 11th Dist. COF to be in the 4-5% range. Inflation is running hot...was at IHOP tonight and yet another new menu with higher prices.
(Make that “Fed Funds Rate” at 4-5%)
So, President Trump, why did you remove the Fed Chair? "Be-Cause."
How do you audit a policy decision?
The main purpose of the Federal Reserve was to prevent depressions and it failed at that.
That has never been a mandate of the Federal Reserve, and not something a single organization could do anyway.
“That has never been a mandate of the Federal Reserve, and not something a single organization could do anyway. “
You should do some reading up on the history of the Federal Reserve, they sold it as being able to prevent depressions.
Do you work for the Federal Reserve, you certainly come across as a trained apologist.
Do you think that the FR has been a positive force in American Life? I don’t.
Its mostly a tax on the Middle Class as they are the group that stores most of their wealth in dollars. (that become worth less every year).
The FR also funds much of the insanity/wars/social engineering that the Government engages in.
Well golly gee whiz I must be reading all the wrong stuff then. Maybe you can do me a favor and point me to what lays that out as the prime purpose of the Fed?
Do you work for the Federal Reserve, you certainly come across as a trained apologist.
Put me down as someone who just values truth and accuracy. Which we don't often see on Federal Reserve threads.
You are of course free to believe whatever you choose to believe. The LAW says "for cause" and leaves it up to the President to determine what that "cause" is.
According to the law as written, if the President did not like the way the fed chairman combed his hair today, he could remove him.
If Congress doesn't want it to mean that, then they need to rewrite the law. Until they do, President Trump can fire whomever he wishes.
We will have to agree to disagree here.
The President can nominate a Fed chair but once the chair is confirmed, the president is out of it and the only way you can remove a chair from office is literally if they broke the law. Congress will have to find a cause to remove them from office through a vote and a procedure. Otherwise, the Fed WILL NOT BE INDEPENDENT and that is what it was created for in the first place.
The “for cause” means MORE THEN A POLICY DISAGREEMENT with the president ( i.e., not the flimsy reason of “I do not like the way you comb your hair” ). Otherwise, the Fed can be swayed by political inclinations other than what the data is telling him about the economy. I do not believe that the “for cause” clause gives the President absolute power to fire the chair FOR ANY REASON.
RE: If Congress doesn’t want it to mean that, then they need to rewrite the law.
I don’t even think that is necessary because I don’t think the ORIGINAL INTENT of the “for cause” clause means FOR ANY REASON flimsy or otherwise.
Otherwise the word “Independence”, which is an attribute given to the Fed, would be meaningless.
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