Federal Reserve Chairman Jerome Powell said Friday he would not resign from his post if President Donald Trump asked him to.
“No,” Powell responded when asked by the moderator at the American Economic Association’s annual meeting: “If the president asked you to resign, would you do it?”
Powell also said he had not received any direct communication from the White House about unhappiness with the central bank’s rate policy, and no meeting with Trump has been scheduled.
“I would say that meetings between presidents and Fed chairs do happen,” was all that Powell said when asked if he would meet with the president.
https://www.cnbc.com/2019/01/04/fed...e-would-not-resign-if-trump-asked-him-to.html
And he can't fire him, except for cause.
The Federal Reserve Act, section 10.2, stipulates that a president can remove a Federal Reserve governor “for cause” rather than “at will.”
This is commonly understood as a severe, egregious or criminal act, “not a disagreement with the monetary policy they are pursuing,” Hockett said.
The law goes back to the 1940s when President Franklin Roosevelt removed a member of the Federal Trade Commission and cited as a reason their divergent views of public policy. The Supreme Court unanimously reversed the firing, saying executives of independent agencies cannot be removed in their term of office except for cause. These agencies “must be free from executive control,” the court ruled.
https://www.marketwatch.com/story/w...-disagreement-over-monetary-policy-2018-10-11
“No,” Powell responded when asked by the moderator at the American Economic Association’s annual meeting: “If the president asked you to resign, would you do it?”
Powell also said he had not received any direct communication from the White House about unhappiness with the central bank’s rate policy, and no meeting with Trump has been scheduled.
“I would say that meetings between presidents and Fed chairs do happen,” was all that Powell said when asked if he would meet with the president.
https://www.cnbc.com/2019/01/04/fed...e-would-not-resign-if-trump-asked-him-to.html
And he can't fire him, except for cause.
The Federal Reserve Act, section 10.2, stipulates that a president can remove a Federal Reserve governor “for cause” rather than “at will.”
This is commonly understood as a severe, egregious or criminal act, “not a disagreement with the monetary policy they are pursuing,” Hockett said.
The law goes back to the 1940s when President Franklin Roosevelt removed a member of the Federal Trade Commission and cited as a reason their divergent views of public policy. The Supreme Court unanimously reversed the firing, saying executives of independent agencies cannot be removed in their term of office except for cause. These agencies “must be free from executive control,” the court ruled.
https://www.marketwatch.com/story/w...-disagreement-over-monetary-policy-2018-10-11
