Trump will study whether to dismiss the president of the Fed Powell, says the advisor

The economic adviser of the White House, Kevin Hassett, said on Friday that President Donald Trump and his team studied the question when asked if the dismissal of the president of the Federal Reserve Jerome Powell was an option.

“The president and his team will continue to study this issue,” Hassett told journalists at the White House in response to a question.

The exchange of Hassett with the press one day came after Trump accelerated a longtime quarrel with the Fed chair, accusing Powell of “doing politics” by not reducing interest rates and claiming that he had the power to expel Powell from his “really fast” work.

Hassett seemed to be distant from his book in 2021, “The Drift: Stopping America’s Slide to Socialism”, in which he argued that the dismissal of Powell during Trump’s first mandate would have harmed the Fed’s reputation as objective and independent manager of the country’s money supply and could have compromised the credibility of the dollar and crushed the stock market.

“I think that at that time, the market was a completely different place. And, you know, I refer to a legal analysis that we had at the time. And if there is a new legal analysis that says something different, then we must rethink our response,” said Hassett.

It was not immediately clear what new legal analysis he was referring, but a case on the question of whether Trump exceeded his authority in the dismissal of two democrats of the federal work commissions currently under the institution at the Supreme Court is closely a previous potential to know if Trump could withdraw Powell.

Powell said the law would not allow his dismissal, that he would not leave Trump by Trump, and that he intended to serve until the end of his mandate in May 2026. Powell also said this week that he did not think that the current case on appeal from the high court of the United States will apply to the Fed.