Trump forcing Powell out “not allowed under the law”?

Federal Reserve Chairman Jerome Powell has claimed that President-elect Trump cannot remove him.

Curiously, Mr. Powell doesn’t seem to know the rules of the road on which he drives the bus . . .

Very clearly, Section 242 of the US Code permits exactly that . . .

Upon the expiration of the term of any appointive member of the Federal Reserve Board in office on August 23, 1935, the President shall fix the term of the successor to such member at not to exceed fourteen years, as designated by the President at the time of nomination, but in such manner as to provide for the expiration of the term of not more than one member in any two-year period, and 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. ​

It’ll be interesting to see how this shakes out. I don’t think the Senate even has to approve the removal, so expect to see SCOTUS weigh in on this one, if challenged by Powell.

 

No, PRESIDENT-ELECT Trump can’t remove him. But, PRESIDENT Trump certainly can.

 

I heard he had to finish his term before he could be removed by a president. I think Trump appointed him and that may change things. I wonder if a President can abolish the Fed. That would get rid of him.

 

As the law is written, any member of the Federal Reserve Board may be removed before completion of their term, and by the president alone, so long as it is for cause. Interpretive as it is, "for cause" includes the substantial failure to perform job duties.

If, in the mind of Trump, Powell failed to perform the duties of his job the removal would be justified. This could come down to whether other members of the FRB come to Powell's defense, or if they collectively express serious differences with Powell's participation / leadership while on the board.

 

The American Lion Jackson did it, and POTUS Trump kept a painting of Jackson in his office, and the Book.

So....Biddle's Bank. I know stuff.