TechFlow, July 16 — According to Jinti Data citing CBS News, multiple directly informed sources revealed that on Tuesday, Trump asked a group of House Republicans whether he should fire Federal Reserve Chair Jerome Powell, and those present expressed agreement.
Several individuals indicated that Trump hinted he would take such action. There is no legal precedent for a president dismissing a Fed chair—federal law states that the Fed chair can only be removed for "cause." Such a move could have severe negative implications for financial markets. Government insiders told CBS that Trump has discussed the possibility of removing Powell for "cause" both publicly and privately, but the White House has not yet formally established a legal basis. Dismissing Powell could immediately trigger legal challenges.
The U.S. Supreme Court recently suggested it believes Trump lacks the authority to do so. In a May ruling, justices determined that Trump may remove members of independent federal agencies such as the National Labor Relations Board, but noted this decision may not extend to the Fed, which they described as a "sui generis, quasi-private entity."
