There have long been reports of a strained relationship between former US President Donald Trump and Federal Reserve Chairman Jerome Powell. This dispute is now once again in the headlines. According to US media reports, Trump had a letter drafted to remove Powell while he was president. This matter resurfaced when Trump expressed his desire to remove the Fed Chairman during a recent meeting.
Issue raised during discussions with lawmakers at the White House
It is reported that this conversation took place during a closed-door meeting in the Oval Office of the White House. Republican lawmakers were also present at this meeting. The subject of discussion was the creation of laws on cryptocurrency, but in the meantime, Trump asked the lawmakers if they thought he should remove Powell from his position. According to some reports, most of the lawmakers agreed with this, after which Trump indicated that he would take steps in this direction.
What did Trump say at the White House?
However, just a few hours after this controversial meeting, Trump stated to the media that he had not made any plans to remove Powell. He also added that he could not rule out any possibility, but no such action was being taken at the moment. He said that unless any major scandal or fraud was proven against Powell, the possibility of removing him was very low.
'The New York Times' report revealed the whole matter
According to a report in 'The New York Times', Trump had also drafted a letter to remove Powell. This letter was prepared when Trump was unhappy with the Fed's interest rate policy. He hoped that Powell would cut interest rates, which would boost economic activity. However, Powell ignored Trump's demands and did not make any major cuts in the rates, which greatly angered Trump.
Powell's appointment was also made during Trump's tenure
Interestingly, the decision to make Jerome Powell the Fed Chairman was made by Donald Trump himself. In 2017, he nominated Powell for this position. Later, in 2021, Joe Biden's government extended his term to 2026. This means that Powell will remain the Fed Chairman until May 2026.
Does the President have the right to remove Powell?
Many people are now raising the question of whether a president like Trump has the right to remove the Fed Chairman. The answer to this question is no. According to the 1913 Federal Reserve Act of the United States, the President appoints the Fed Chairman, but removing them is not easy. The Chairman is appointed for a fixed term of four years and can only be removed for 'proper cause', meaning serious reasons.
Trump's return signals
Now that Donald Trump is once again in the race for the presidential election, this dispute related to Powell has once again heated up. If Trump becomes president again, it is believed that he may try every possible way to remove Powell. However, legally, this will not be so easy. But looking at Trump's intentions and strategy, this matter may gain more momentum in the coming time.
Allegations regarding the renovation project were made
Some media reports also stated that questions were raised about a renovation project being run by the Federal Reserve during the Trump administration. This project was worth about $2.5 billion and Powell was accused of alleged irregularities in it. However, no concrete evidence has come to light in this matter so far, but Trump tried to use this issue against Powell.
Questions were also raised about the Fed's autonomy
This entire incident has once again sparked a debate about the independence of the Fed. The Federal Reserve is considered an independent institution in the United States, which determines its policies independently of government pressure. But if a president openly talks about removing the Fed Chairman, it raises questions about the autonomy of the institution. This is the reason why this issue has become not only political but also constitutional.
