US President Donald Trump has recently escalated his long‑running attack on Federal Reserve Chair Jerome Powell, lambasting him for keeping interest rates too high and accusing him of “playing politics”.
He told reporters earlier this month "Powell's termination cannot come fast enough" and warned, "If I want him out, he'll be out of there real fast, believe me." After a strong negative market reaction, the president backtracked - until further notice - and said he does not intend to fire Powell. As highlighted by US Treasury Secretary Scott Bessent, such an attempt would test the legal safeguards that protect the Fed from political pressure and destabilise financial markets. Legal background The Federal Reserve Act sets clear limits. Under 12 U.S.C. paragraph 242, the president ...
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