Trump blasts Fed chair Jerome Powell after interest rates stay unchanged—can he really fire him?
Tired of too many ads?
Remove Ads
Federal Reserve Holds Interest Rates Steady, Donald Trump Responds With Insults
Tired of too many ads?
Remove Ads
Can a US President Fire the Fed Chair?
Trump's Legal Challenge May Shift the Rules
Supreme Court Weighs In, Fed Exempt For Now
What Exactly Is the Federal Reserve?
Tired of too many ads?
Remove Ads
FAQs
US president Donald Trump is once again going after Federal Reserve Chair Jerome Powell, this time with a fresh round of insults after the central bank left interest rates unchanged on July 30, as per a report.Trump wrote a post on his social media site Truth Social, the next day, on July 31, saying, "Jerome 'Too Late' Powell has done it again!!!" adding, "He is TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair," as quoted by a USA Today report.The Federal Reserve's decision wasn't exactly shocking, as it has kept its key short-term rate steady all year, trying to juggle economic growth with lingering inflation concerns and uncertainty over global trade and tariffs, according to the USA Today report.But for Trump, who's repeatedly urged the Fed to slash rates, this was just more fuel for his long-running criticism of Powell, as per the report.ALSO READ: Millions of US drivers could get $5,200 each after major data breach — are you eligible? The US president had even floated the idea of firing the Fed chair in the past. Trump's threat has led many to question if firing Powell is actually possible, according to the USA Today report.According to the report, Trump cannot legally remove or fire Powell.The Fed chair had addressed the potential for political pressure during his speech in Chicago in April, saying, "Our independence is a matter of law," Powell said, explaining Fed governors are not removable except "for cause," as determined by law, reported USA Today.He highlighted that, "So, you know, Congress could change that law. But, I don't think there's any danger of that," adding, "Fed independence has pretty broad support across both political parties and both sides of the Hill," as quoted in the report.ALSO READ: Mark Zuckerberg's secret Kauai empire: 2,300 acres, tunnels, treehouses — and a doomsday bunker However, the Fed chair had also pointed out a case Trump has taken to the US Supreme Court that could change the landscape of independent boards' relationship with those in power, as reported by USA Today. The US president's case could challenge the 1935 Humphrey's Executor precedent, which holds that the president cannot fire independent agency board members without a cause, according to the report.Powell had emphasised at that time, "I don't think that decision will apply to the Fed, but I don't know. It's a situation we're monitoring carefully," as quoted in the USA Today report.However, after that, the US Supreme Court has granted a win to Trump in the case but has indicated that it could later overturn the ruling; however, the court has still suggested the Fed would be exempt, as reported by Reuters.The Federal Reserve, which is also known as "the Fed," is the US central bank that oversees monetary policy and financial regulation, among other things, "to promote the effective operation of the U.S. economy and, more generally, to serve the public interest," USA Today reported, citing the Fed's website.Not legally, the Fed chair can only be removed "for cause," according to the law.He has threatened to, but legally he hasn't been able to do so.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
a few seconds ago
- The Hindu
The Hindu Morning Digest, August 7, 2025
Trump non-committal on whether extra India tariffs will go with Russia-Ukraine ceasefire U.S. President Donald Trump did not confirm whether the additional 25% tariffs he had announced on Wednesday (August 6, 2025), on Indian exports to the U.S., for New Delhi's trade in arms and energy with Moscow, would be cancelled if Russia and Ukraine agreed to a ceasefire. East Asia to be next focus of India's major diplomatic outreach Against the backdrop of growing uncertainty in India-U.S. ties, Prime Minister Narendra Modi is expected to reach out to East Asia in the coming weeks. As part of the initiative, Mr. Modi is likely to travel to Japan to meet his Japanese counterpart, Shigeru Ishiba, by the end of August. The visit to Japan is significant, as both countries are part of the Quad initiative that was launched by Australia, India, Japan, and the United States in 2017. Trump's imposition of 50% tariff is economic blackmail to secure unfair trade deal: Rahul Gandhi The Leader of the Opposition in the Lok Sabha, Rahul Gandhi, on Wednesday said the second round of 25% tariff imposed on India was an 'economic blackmail' aimed at securing an unfair trade deal. In a post on X, Mr. Gandhi said Prime Minister Narendra Modi should not let his 'weakness' override the interests of the Indian people. Donald Trump plans to meet Putin, Zelenskyy as soon as next week, NYT reports U.S. President Donald Trump plans to meet in person with Russian President Vladimir Putin as early as next week, the New York Times reported on Wednesday (August 6, 2025), citing two people familiar with the plan. Mr. Trump then plans to meet with Ukrainian President Volodymyr Zelenskyy, the newspaper reported, adding that the plans were disclosed in a call with European leaders on Wednesday. NSA Ajit Doval to hold talks with Russian officials in Moscow National Security Adviser Ajit Doval will hold meetings with senior Russian officials in Moscow on Thursday, just a day after the U.S. decided to impose an additional 25% penalty tariffs on India for its import of Russian oil. According to sources, Mr. Doval's visit is intended to prepare details for Russian President Vladimir Putin's visit to Delhi later this year. All Indians should work together to make India the world's third largest economy: PM Modi Prime Minister Narendra Modi said on Wednesday urged all stakeholders to work together to make India the world's third largest economy and scale up national productivity. Addressing the Kartavya Bhavan inauguration programme in the national capital, Mr. Modi encouraged all Indians to contribute to the success stories of government initiatives such as Make in India and Atmanirbhar Bharat. Strengthening India's capabilities must become a shared pursuit and personal mission, he said. Soldier opens fire at U.S. military base, wounding five troops A soldier opened fire at a U.S. base in the southern State of Georgia on Wednesday (August 6, 2025), wounding five fellow troops before he was tackled and apprehended, a senior officer said. Fort Stewart, a large Army base that is home to thousands of soldiers and their relatives, went into lockdown as emergency personnel raced to respond to the 'active shooter' situation, with troops stepping in to help stop the violence. A.G. Noorani, Arundhati Roy's books among 25 'forfeited' by J&K Home Department The Jammu & Kashmir Home Department on Wednesday (August 6, 2025) declared 25 books, many by prominent writers such as A.G. Noorani, Sumantra Bose, Arundhati Roy and Ayesha Jalal, as 'forfeited for propagating false narrative and secessionism' in J&K. Petrol lobbies behind E20 fuel fear campaign: Nitin Gadkari Tests show that older vehicles are not damaged in any way by using a new petrol blend with a higher 20% of ethanol, Minister for Road Transport and Highways Nitin Gadkari said on Wednesday (August 6, 2025), blaming the social media outrage against the new E20 blend on a 'political conspiracy', possibly fuelled by petrol lobbies.. R.G. Kar victim's family to meet CBI Director, Home Minister Ahead of a mega rally on August 9 to mark one year of the horrific crime, parents of the doctor who was raped at killed at Kolkata's R.G. Kar Hospital, on Wednesday (August 6, 2025) left for Delhi. The parents said that they will meet the Director of Central Bureau of Investigation (CBI) during their visit to Delhi. They also said that they are willing to meet Home Minister Amit Shah if they can secure an appointment.
&w=3840&q=100)
Business Standard
a few seconds ago
- Business Standard
Trump admin freezes $584 mn UCLA grants, research projects at risk
The Trump administration has suspended $584 million in federal grants for the University of California, Los Angeles, nearly double the amount that was previously thought, the school's chancellor announced on Wednesday. UCLA is the first public university whose federal grants have been targeted by the administration over allegations of civil rights violations related to antisemitism and affirmative action. The Trump administration has frozen or paused federal funding over similar allegations against private colleges. "If these funds remain suspended, it will be devastating for UCLA and for Americans across the nation," Chancellor Julio Frenk said on Wednesday in a statement, noting the groundbreaking research that has come out of the university. The departments affected rely on funding from the National Science Foundation, the National Institutes of Health and the Department of Energy, Frenk said. The US Department of Education did not immediately respond to an email from The Associated Press requesting comment. The Trump administration recently announced the US Department of Justice's Civil Rights Division found UCLA violated the Equal Protection Clause of the Fourteenth Amendment and Title VI of the Civil Rights Act of 1964 "by acting with deliberate indifference in creating a hostile educational environment for Jewish and Israeli students". The announcement came as UCLA reached a USD 6 million settlement with three Jewish students and a Jewish professor who sued the university, arguing it violated their civil rights by allowing pro-Palestinian protesters in 2024 to block their access to classes and other areas on campus. The university has said that it is committed to campus safety and inclusivity and will continue to implement recommendations. The new UC president, James B Milliken, said in a statement on Wednesday that it has agreed to talks with the administration over the allegations against UCLA. "These cuts do nothing to address antisemitism," Milliken said. "Moreover, the extensive work that UCLA and the entire University of California have taken to combat antisemitism has apparently been ignored." Milliken said the "cuts would be a death knell for innovative work that saves lives, grows our economy, and fortifies our national security. It is in our country's best interest that funding be restored". As part of the lawsuit settlement, UCLA said it will contribute USD 2.3 million to eight organisations that combat antisemitism and support the university's Jewish community. It also has created an Office of Campus and Community Safety, instituting new policies to manage protests on campus. Frenk, whose Jewish father and grandparents fled Nazi Germany to Mexico and whose wife is the daughter of a Holocaust survivor, launched an initiative to combat antisemitism and anti-Israeli bias. Last week, Columbia agreed to pay USD 200 million as part of a settlement to resolve investigations into the government's allegations that the school violated federal antidiscrimination laws. The agreement also restores more than USD 400 million in research grants. The Trump administration plans to use its deal with Columbia as a template for other universities, with financial penalties that are now seen as an expectation.
&w=3840&q=100)
Business Standard
a few seconds ago
- Business Standard
Tariff hike similar to trade embargo; INR immediate casualty: Mahesh Patil
US President Donald Trump signed an executive order on Wednesday imposing an additional 25 per cent tariff on goods imported from India. The decision comes on the heels of India's continuing to purchase Russian oil as a violation of sanctions and a threat to US foreign policy, reports suggest. In a statement released by the White House on Wednesday, the US administration said the decision is a direct response to India's 'direct or indirect' import of Russian crude. 'The Government of India is currently directly or indirectly importing Russian Federation oil,' the order noted, adding that such imports undermine efforts to isolate Russia amid its ongoing conflict with Ukraine. READ ABOUT IT HERE The new rate will be effective after 21 days and raises announced US tariffs on India to a steep 50 per cent. Similar to the reciprocal tariffs, the penalty excludes products under Section 232 investigation, and will raise the US effective tariff rate on India to 33.8 per cent, from 18.8 per cent previously. Note that pharma and electronics exports (~30 per cent of India's US exports) are currently exempt. If effective, the steep 50 per cent tariff would be similar to a trade embargo, and will lead to sharp fall in affected export products, especially ones with thinner margins (textiles, gem & jewellery). We had earlier expected a downside risk of nearly 20bp (basis points) to FY26 GDP (gross domestic product). If these tariffs materialise, then the hit could be higher, depending on their duration. A key question is how India's government will respond to President Trump's pressure tactic. The first priority is supporting exporters. On Russia links, the government has so far taken a defiant stance on its oil imports from Russia. The government could look to negotiate with the US, utilising the 21-day reprieve and the upcoming trip of the US trade negotiators The immediate casualty is rupee, which will take the brunt and this will provide some respite for exporters. Counter intuitively, fall in InR (once it stabilises) is positive for local earnings and hence equities benefit with a lag. More importantly, we are now par with Brazil, that provides a blueprint- it saw a 6-7 per cent fall from peak before recovering in local terms. Again, whether we will only have a shallow correction or a meaningful one remains to be seen, but for now we have seen worst of tariff news flow. And in a few months, rates will settle down to more acceptable levels. Any knee jerk correction in the market would be a good opportunity for increasing allocation to equity as the macro and the long term fundamentals of India are fairly strong.
