US President donald trump is currently considering ways to sack Federal Reserve Chairman Jerome Powell. His economic advisor gave this information in the white house on Friday. When asked if sacking Powell is possible? National Economic Council director Kevin Hassett replied to this, saying that the President and his team are thinking about it. Earlier, trump had attacked Powell for reducing interest rates in the US.
It is not so easy to sack Powell
It is not so easy for trump to sack Powell because the Fed Reserve is an independent body. According to the 1935 US supreme court decision, trump has limited rights to sack the Fed Chief. In such a situation, the Fed Chief can be sacked legally only by giving any reason. These include misconduct, misbehavior or inefficiency.
Powell is not in a hurry to reduce interest rates
Trump, furious with Powell, is criticizing him fiercely these days. trump himself appointed Powell as the chairman of the US Federal Reserve during his first term and now trump is accusing him of playing politics.
In a program held in Chicago last Wednesday, Powell had said that trump has increased tariffs more than expected. This will increase the prices of things, which can lead to inflation and economic uncertainty. Powell, adopting a tough stance, said that he is not in a hurry to reduce interest rates. First he wants to see what effect Trump's tariff policy has on the economy.
Trump is putting pressure to reduce interest rates
Meanwhile, trump is putting pressure to reduce interest rates. After the european Central bank reduced interest rates, trump said, Powell should have also reduced interest rates like the ECB long ago and now he should definitely reduce it. oil prices and grocery prices have come down, eggs have become cheaper. America is getting richer because of tariffs. Powell's dismissal can't come soon enough.
click and follow Indiaherald WhatsApp channel