Trump has been discussing the removal of Fed Chair Powell with his advisors for months
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Trump has reportedly discussed firing Fed Chair Jerome Powell for months and has even approached former Fed Governor Kevin Warsh about taking over the role, according to the Wall Street Journal.
“If I want him out, he’ll be out of there real fast, believe me,” Trump expressed in a meeting at the Oval Office.
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Warsh and Treasury Secretary Scott Bessent have advised against it while other advisors have backed the president.
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Legal Scholars said a 1935 court ruling which unanimously held that president Roosevelt lacked the authority to fire a Federal Trust Commissioner (FTC), offers the strongest guardrail to protect fed independence.
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However, the Justice Department has said it wants to overturn the 1935 legal precedent.
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Powell already said he thinks that even if the Supreme Court overturns the 1935 legal precedent, it would find a way to protect fed governors from removal.
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Trump already fired two Democratic FTC commissioners, a move regarded as going against the 1935 ruling.