Tillis is still sticking to his guns. Hopefully he doesn’t back down. Maybe Powell can stay in his seat long enough for Dems to retake the Senate. I assume a deal will happen before that but who knows.
It’s worth noting that, once again, Trump is purely shooting himself in the foot with his insistence on sticking it to Powell. It’s 100% pure spite. And yet further evidence that Trump is just very stupid.
No-Computer7653 on
To be clear on the forthcoming rage here.
Powell has already said he wont be resigning his BOG seat until the criminal investigation is concluded. His seat doesn’t expire until 1/31/28, fed chairs have historically resigned their BOG seat when their chair term is up but its convention.
Trump doesn’t have authority to remove Powell. SCOTUS told him that a year ago and they were not particularly impressed at oral arguments about the Cook firing. Hopefully that opinion drops this Friday.
The actual authority fed chair has is very limited. They mostly act as the spokesperson for BOG but the actual authority is vested in the BOG as a collective and requires a majority of them to agree to any regulatory or other changes. The regulatory setup is designed to be very hard for any administration to mess with, the post GFC changes are one of the best examples of evidence based regulation in history and the whole system is setup based on that.
That FOMC chair is the same person as fed chair is a convention not statutory requirement. If FOMC feel that Warsh doesn’t have enough independence from the executive they could decide to elect someone else. Like Powell, or indeed one of the regional bank presidents (probably NY if that did happen). They could also change their own rules to allow an external person to be elected, like Bernanke (PBUH).
There is also the fun that Trump still doesn’t get FOMC set target rates as a group instead of the chair having any special authority. Some prior chairs have been trusted and respected enough they carry informal authority here but there have only been a few of those in fed history and the last couple of chairs haven’t had that.
The Trump mean & rage tweets as this unfolds are going to be delicious.
AMCorBUST2021 on
This is very much about Trump wanting loyalists in every position, regardless of qualifications. Warsh seems more qualified than most, but his primary qualification is likely telling Trump he would be a yes man.
What Trump wants is rate cuts.. our debt to GDP is 135% and rising. The illegal war in Iran is causing rapid increase in energy prices with knock on effects to follow.
Jerome Powell has been a dutiful public servant and fulfilled his role during chaotic and turbulent times. We would be lucky to have him stay on.
3 Comments
Tillis is still sticking to his guns. Hopefully he doesn’t back down. Maybe Powell can stay in his seat long enough for Dems to retake the Senate. I assume a deal will happen before that but who knows.
It’s worth noting that, once again, Trump is purely shooting himself in the foot with his insistence on sticking it to Powell. It’s 100% pure spite. And yet further evidence that Trump is just very stupid.
To be clear on the forthcoming rage here.
Powell has already said he wont be resigning his BOG seat until the criminal investigation is concluded. His seat doesn’t expire until 1/31/28, fed chairs have historically resigned their BOG seat when their chair term is up but its convention.
Trump doesn’t have authority to remove Powell. SCOTUS told him that a year ago and they were not particularly impressed at oral arguments about the Cook firing. Hopefully that opinion drops this Friday.
The actual authority fed chair has is very limited. They mostly act as the spokesperson for BOG but the actual authority is vested in the BOG as a collective and requires a majority of them to agree to any regulatory or other changes. The regulatory setup is designed to be very hard for any administration to mess with, the post GFC changes are one of the best examples of evidence based regulation in history and the whole system is setup based on that.
That FOMC chair is the same person as fed chair is a convention not statutory requirement. If FOMC feel that Warsh doesn’t have enough independence from the executive they could decide to elect someone else. Like Powell, or indeed one of the regional bank presidents (probably NY if that did happen). They could also change their own rules to allow an external person to be elected, like Bernanke (PBUH).
There is also the fun that Trump still doesn’t get FOMC set target rates as a group instead of the chair having any special authority. Some prior chairs have been trusted and respected enough they carry informal authority here but there have only been a few of those in fed history and the last couple of chairs haven’t had that.
The Trump mean & rage tweets as this unfolds are going to be delicious.
This is very much about Trump wanting loyalists in every position, regardless of qualifications. Warsh seems more qualified than most, but his primary qualification is likely telling Trump he would be a yes man.
What Trump wants is rate cuts.. our debt to GDP is 135% and rising. The illegal war in Iran is causing rapid increase in energy prices with knock on effects to follow.
Jerome Powell has been a dutiful public servant and fulfilled his role during chaotic and turbulent times. We would be lucky to have him stay on.