- President Donald Trump He said this week of Finance Chairman Jerome Powell “termination cannot come quickly.” That has led to debate on whether the President has the power to remove the federal reserve. Chicago president Fed Austan goolsbee says this move could “weaken the federation of the fed.”
This week, President Donald Trump introduced a Exhibition and the chair of the federal reserve Jerome Powell After the head of the central bank made a Speech Warning of Presidential Tax Impact Again, Remote Tax.
“The rate of tax increase announced so far is higher than expected, and the same could be true for economic impacts, which will include inflation and slow growth,” Powell said on Wednesday during a speech at the Chicago economy.
Trump quickly He was chased back The next day, criticizing Powell for not reducing interest rates quickly enough.
“'Very late' Jerome Powell of the Fed, who is too late and wrong, yesterday released a report that was another, and the most common, complete 'Mess!'” Trump wrote in a social media post. “Powell's termination can't come quickly!”
Although Trump acts as if he has Power to remove the fed seatThis comes as a direct challenge for a close 100 -year predecessor from a Supreme Court case in which the court held that President Franklin Roosevelt could not remove the heads of the free agent for no good reason such as ignoring or mistakes. At the same time, many critics are also afraid of Trump's move to remove Powell would decide to be confident in the American economy.
Financial presidents do not comment on politics in order to hold the Central Bank's position as a termination institution, but one is afraid of what can happen if Trump discovered a way to remove Powell.
“I hope that we do not focus on an environment where financial independence is being questioned,” Chicago fed President Austan goolsbee He was told CBS“National face and Margaret Brennan” Sunday. “For that reason it can undermine the Fed's integrity.”
Goolsbee also noted that there is a “common unity” among economists that the Fed should have financial freedom due to political interference.
“They came not as a theory, but just by looking around the world where they have no money,” goolsbee said. “(Position) that any Fed or any central bank can do the work that it needs to do is very important.”
Powell also seemed to be sure that he could not be dismissed by Trump, and when asked if he would leave if the president wanted him, he said no.
“Overall, freedom to be fed is very understandable and supported in Washington, in Congress, where it is very important,” Powell said at the Chicago economy.
Trump also appointed Powell in 2017, but he has criticized everything he did with Reduce interest rates. Increase interest ratesand Keep them consistent.
Still, there is a debate about whether freedom of protection is really protected. Some experts say financial independence is more common than the law.
“Laws also depend on people and who they are, how they interpret things, and what they are willing to do. I think there may be a reduction in the Fed Freedom level,” Itay Goldstein, Chairman of the Financial Department at the University of Wharton University of Pennsylvania ,, He was told LuckS Greg McCenna. “With hope not.”
This story was previously shown Bahati.com
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