President Trump Tuesday kept up the pressure on the head of the Fed following a report that lawyers at the White House have explored the legality of stripping Jerome Powell of the Fed’s Chairmanship.
Asked by reporters outside the White House if he wanted to demote Chairman Powell, President Trump said: “Let’s see what he does.”
President Trump’s remark came a day before the FOMC was set to announce its next decision on interest rates.
The President added that he wants a “level playing field” from the Fed.
Early Tuesday, White House economic adviser Larry Kudlow declined to confirm or deny, reported here. Mr Kudlow told reporters at the White House that President Trump is not considering any changes to Powell’s status.
The White House counsel’s office has weighed the legal implications of stripping Mr. Powell of his Chairmanship and leaving him as a Fed governor, that has never been done before. A replacement would have to be nominated by President Trump and confirmed by the Senate.
Trump’s team conducted the legal analysis and came to a conclusion that has remained closely held within the White House, the people said, requesting anonymity to discuss internal deliberations. It isn’t clear whether Trump directed the legal review, and the people didn’t describe the outcome.
A White House official said he would not comment.
Mr. Kudlow said demoting Mr. Powell is not currently under consideration. “It’s not happening Today, so therefore I have nothing to say on it,” he told reporters at the White House.
Fed spokeswoman said in an e-Mail: “Under the law, a Federal Reserve Board chair can only be removed for cause.”
We wait, We see…
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