Reply to President Trump is calling for lower Fed rates

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Trump appointed Fed Reserve Chairman Powell in 2017. Who’s the major loser? [/quote]

Powell did get things wrong numerous times.  Whether Trump is correct in calling for lower Fed rates is an open question.  Lower rates might spur domestic borrowing to replace overseas investments.

[b]Presidents from both parties have called for lower interest rates for decades.[/b][/quote]

They didn't do so by openly bullying and threatening the Fed Chair on social media and on TV.[/quote]

Sen. Elizabeth Warren criticized Powell.  “Your record gives me grave concern,” the Massachusetts Democrat told Powell while he was testifying before the Senate Banking Committee. “Over and over, you have acted to make our banking system less safe, [b]and that makes you a dangerous man to head up the Fed.[/b] And it’s why I will oppose your renomination.”

Also, Sen. Warren called for Powell to cut rates in Sept. 2024:

"The Fed chair has already said he's waited too late. He has already indicated that there were economic consequences of having held interest rates too high for too long. The data show us that inflation is down. He should have lowered these interest rates earlier,"  "He needs a bigger cut so that he shows that he finally gets it and that he is not making a deliberate effort to crash this economy," she continued.  "It is time to lower the interest rate. I believe it should go down by 75 basis points. He needs to signal to the market that he finally gets it and that his job is to keep this economy steady," she continued.

Warren and Senate colleagues Sheldon Whitehouse, D-R.I., and John Hickenlooper, D-Colo., also penned a letter to Powell on Monday, urging the aggressive rate cut, warning that delays in doing so "have threatened the economy and left the Fed behind the curve."[/quote]

The economy in Sept 2024 is very different than it is today. Apples and oranges to make that argument.[/quote]

The point is that the comments are comparable.  If Sen. Warren and Sen. Whitehouse can criticize Powell (over the same issue of cutting rates), then so can the President.[/quote]

The president can criticize all he wants.  He is protected by the first amendment.  What he cannot do is threaten.[/quote]

And these aren't empty threats.  He has fired other heads of independent agencies purely to expand his power, simply to then be able to fire Powell.

Your move, Supreme Court.  Is this legal? Or not?[/quote]

If the President can make out a case "for cause", then he has the authority to fire Powell.  It certainly appears that Sen. Warren and Sen. Whitehouse had concerns about Powell only 6 months ago - with Sen. Warren saying "Over and over, you have acted to make our banking system less safe, and that makes you a dangerous man to head up the Fed."  That sounds like an accusation that Powell has failed to do his job in an appropriate manner.[/quote]

"For cause"requires some degree of malfeasance (or in some cases nonfeasance).  Misfeasance is not "For cause".[/quote]

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