There are reports that US President donald trump may soon sack Jerome Powell, the chairman of the US central bank Federal Reserve. In a meeting with Republican lawmakers in the Oval office of the white house on tuesday evening, he said that he could remove Fed Reserve Chairman Jerome Powell from his post. However, trump later denied saying anything like this.
Trump drafted a letter
In this meeting to discuss the crypto regulation bill, trump had asked the lawmakers if they thought he should sack Powell. According to a white house official, after getting everyone's consent, trump said to implement it.
The New York Times report said that trump has also drafted a letter regarding Powell's sacking. However, just hours after this meeting on Wednesday, trump said in the white house, we do not plan to do anything like this. I do not rule out any possibility, but the possibility is very low unless he has to leave the post due to some fraud.
Powell was chosen by Trump
Powell was first nominated by trump in 2017. Then in 2021, Biden's government extended his term one more time. He will retire from the post of Fed Reserve Chairman in May 2026. trump is angry with Powell for not cutting interest rates. Now the question arises whether trump has the right to remove Powell? The answer is no.
The Federal Reserve Act of 1913 states that Fed governors are appointed by the President and are elected for a four-year term with the advice and consent of the Senate. The President has no legal right to remove the Fed Chairman. However, he can try to remove him by proving some reason. Let us tell you that recently Trump's government had accused Powell of mismanagement of $ 2.5 billion renovation project in the Fed.
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