Donald Trump

President Donald Trump

Reserve

It’s no surprise that President Donald Trump is exploring options to reshape the U.S. Federal Reserve by acquiring Bitcoin with Government funds to position the United States as the leading crypto hub. This was the theme and mostly talked about during his election campaign.&nbsp;
Trump appointed Powell as the Chairman of the Board of Governor of the Federal Reserves in February 2018 during his first term as the President. But, both of them always went toe to toe with each other, over issues of interest rate. In 2022, President Joe Biden renominated Powell to a second four-year term.
“We’re not allowed to own Bitcoin. That’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed,” <a href="https://www.reuters.com/technology/fed-cant-hold-bitcoin-not-seeking-change-that-powell-says-2024-12-18/?utm_source=chatgpt.com" target="_blank" rel="noopener noreferrer nofollow">Powell said</a>.&nbsp;
Now, there are talks that Trump might fire Powell when he gets back to office. But can he? Unfortunately, Trump cannot fire Powell but he may attempt to remove other members of the board.&nbsp;
The Fed majorly compares seven members who are presidential appointees confirmed by the Senate.&nbsp; With several Biden appointees currently in office, Trump may seek to “clean house” if reelected.
Michael Barr, the Vice Chair for Supervision and a Biden appointee, is said to be Trump’s first target. Barr’s overseas bank regulations, which is a role not directly tied to monetary policy, may give Trump potential reasons to challenge his position.&nbsp;
Barr’s term runs until 2026, but Trump’s advisers are considering arguments to remove him. Knowing this might happen, Barr has asked for legal advice from Arnold &amp; Porter, a well-known law firm.
Other Biden appointees, such as Adriana Kugler, Philip Jefferson, and Lisa Cook, are also considered. Kugler, whose term ends in January 2026, is rumored to have a poor reputation, which could make her an easier target.
On the other hand, Trump-appointed members Christopher Waller and Michelle Bowman are likely to keep their jobs. Waller works on monetary policy, while Bowman focuses on community banking.
Legal protections for Federal Reserve governors require a “for cause” standard for removal. This means misconduct, not policy disagreements, is needed to justify their dismissal.&nbsp;
“Trump could try and he might try,” <a href="https://abcnews.go.com/Business/fed-chair-trump-remove-trump-influence-interest-rates/story?id=115636961" target="_blank" rel="noopener noreferrer nofollow">said</a> Alan Blinder, a former Vice Chair of the Fed. If contested, the matter could escalate to the Supreme Court. However, Blinder thinks the court will support Powell.&nbsp;
Trump might also attempt other ways like demoting Powell to a lower position on the board. Though that has never happened before, many experts view this as a legal gray area. Alternatively, Trump could press a Republican-controlled Congress to amend the Federal Reserve Act to diminish the institution’s autonomy.
The Federal Reserve’s independence has been a cornerstone of U.S. economic policy since the 1950s. Critics say that trying to weaken it could upset financial markets.
However, Trump has previously spoken on the matter in a recent interview on <a href="https://www.nbcnews.com/politics/donald-trump/donald-trump-says-wont-fire-fed-chief-jerome-powell-rcna183276" target="_blank" rel="noopener noreferrer nofollow">NBC News’ “Meet the Press</a>.” When asked whether he plans to fire Powell, he said “No, I don’t think so,” Trump said. “I don’t see it. But I don’t – I think if I told him to, he would. But if I asked him to, he probably wouldn’t. But if I told him to, he would.”
In another interview with <a href="https://www.bloomberg.com/features/2024-trump-interview/?srnd=homepage-americas" target="_blank" rel="noopener noreferrer nofollow">Bloomberg</a> in June, he said “I would let him serve it out, especially if I thought he was doing the right thing.”
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/12/21/bitcoin-will-pay-off-35-trillion-dollar-debt-donald-trump/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Will Pay off 35 Trillion Dollar Debt: Donald Trump</a>
</blockquote>

Does Trump Plan to Remove Powell Next Year?

The Crypto Times

Other articles published on Dec 21, 2024

Weekly Article Recap: 12/09-12/13

Electric Elon Musk (ELECMUSK) Solana Memecoin to Explode 18,000% Before Exchange Listings, While ...

6 Best Altcoins To Watch Today December 21 – Theta Network, IOTA, Tezos, Uniswap

Daddy Pepe (DADDPEPE) Memecoin Will Explode Over 11,000% Before Exchange Listings, While Shiba In...

Cluster Protocol Secures Seed & Strategic Investment to Bring Decentralized AI Agents to the World

Crypto hedge funds soar: Brevan Howard and Galaxy Digital ride Bitcoin to stellar returns

Join our free newsletter for daily crypto updates!