Fed Firing?

Will he? Won’t he? Can he?

President Trump reportedly showed Republican lawmakers a draft termination letter for Federal Reserve Chairman Jerome Powell, but later said the firing was “highly unlikely.” The stock market opposes Powell’s potential pink slip (dipping each time it’s suggested), but the President is publicly frustrated that Powell won’t cut interest rates. 

The Fed maintains that Trump doesn’t have the authority to fire Powell. The president appoints the Fed Chair to a 4-year term (which requires Senate confirmation), but can only fire them for “cause.” Disagreement over when to cut rates does not merit “cause,” but the Trump Administration suggests Powell has mismanaged a $2.5B renovation to Federal Reserve buildings. 

It’s generally assumed that, if the letter is ever sent, the Supreme Court will be forced to weigh in.

Verse to consider when things feel up in the air… “Jesus Christ is the same yesterday and today and forever.” 
Hebrews 13:8 (CSB) (read full passage)