Fed chair says Trump can't remove him. Could Trump still influence interest rates?
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Jerome Powell, chairman of the Federal Reserve, stated he would not resign if asked by President-elect Donald Trump, asserting that Trump cannot legally remove him. Trump allies, including Sen. Mike Lee and Elon Musk, expressed support for Trump's potential influence over the Fed. Experts noted that while Trump could attempt to challenge Powell's position, legal ambiguities exist regarding the grounds for removal. Trump could also push Congress to amend the Federal Reserve Act to weaken its independence. However, experts doubt Trump's ability to significantly influence interest rates in the short term, as any removal attempt would likely face legal challenges and market backlash. Powell's term expires in 2026, allowing Trump to appoint a new chair then. The independence of the Fed is crucial for maintaining stable inflation and employment.
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https://abcnews.go.com/Business/fed-chair-trump-remove-trump-influence-interest-rates/story?id=115636961
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