Live updates: Share market rises after three days of losses, Guzman y Gomez announces IPO and ASX listing
Donald Trump has been found guilty of a hush-money plot to influence the 2016 election, but still could theoretically run for US President.
Whoever wins the US presidential election in November will have to navigate economic challenges and the independence of the US Federal Reserve.
The former President has repeatedly said that if he is re-elected, he would not reappoint Federal Reserve chairman Jerome Powell.
In February, Trump accused Powell of considering rate cuts to give Democrats an advantage in the 2024 elections.
“It looks to me like he’s trying to lower interest rates for the sake of maybe getting people elected, I don’t know,” Trump said in an interview with Fox Business Network’s Maria Bartiromo.
“I think he’s going to do something to probably help the Democrats, I think, if he lowers interest rates,” Trump said when asked if he believes the country will avoid a recession.
Trump tapped Powell in 2017 to lead the US central bank but the Republican turned against him soon after his February 2018 swearing-in.
Ever since, Trump has attacked Powell and the US Federal Reserve for raising borrowing costs.
President Joe Biden, who beat Trump in the 2020 White House race, reappointed Powell to a second term in 2021.
The US Federal Reserve chairman cannot be fired, but the US president is responsible for nominating a candidate every four years for Congress’ approval.
The US Federal Reserve System consists of the Federal Reserve Board of Governors in Washington and twelve regional Federal Reserve banks across the country.
Peter Conti-Brown, a nonresident fellow — economic studies, at The Hutchins Center on Fiscal and Monetary Policy, wrote previously for the Brookings Institute that the current Board of Governors is almost entirely the product of President Trump’s political preferences.
He says, in practice, it matters a lot who is chair.
“The Fed Chair is the FOMC’s spokesperson in regular press conferences. His speeches generate significant, market-moving attention. And, of course, as the public face of the Fed, the Fed Chair also becomes a target for criticism, including, these days, from (former) President Trump, who has occasionally expressed interest in firing Fed Chair Powell…”
As to whether Trump could actually remove him, he writes, “policy differences are probably not enough justification, but the Supreme Court could ultimately decide that question differently. If it did, that would represent one of the biggest changes in administrative law in the United States in 80 years, so don’t count on it.”
He says it is possible that “Powell could resign his governorship and go quietly into the night” or that “he could sue to get legal clarity on his status”.
Read more about Will Donald Trump go to jail? Can he still be president? Here’s what happens next
