Trump can complain, but he can’t fire Powell

WASHINGTON >> Jerome Powell, the man President Donald Trump chose last year to lead the Federal Reserve, may at times think he’s living through a prolonged episode of the “The Apprentice,” the reality TV show in which Trump was famous for declaring, “You’re fired!” Except he’s not. Trump in recent weeks has repeatedly attacked the Fed — and Powell personally — for the central bank’s interest rate increases, which the president has blamed for stock market turmoil and signs of economic weakness. Critics have expressed worry that the president’s attacks threaten the Fed’s ability to operate free of political pressure.

Trump has even been asked whether he would try to oust Powell. He said he wouldn’t. But could he? No Fed chairman has ever been removed by a president. The law creating the Fed says its officials and those of other independent agencies can be “removed for cause” by a president. While that issue has never arisen in regard to a Fed official, the courts ruled decades ago that “for cause” meant more than a policy disagreement with the president.

Trump has been attacking Powell since last summer as the central bank was raising rates, and the criticism escalated last month as the stock market took a nosedive. In his latest comments Tuesday, Trump blamed the Fed not only for the stock market’s declines but also for General Motors’ announcement this week of jobs cuts and plant closings.

“I’m doing deals, and I’m not being accommodated by the Fed,” he said in an interview with the

MARK LENNIHAN — THE ASSOCIATED PRESS Federal Reserve Board Chairman Jerome Powell speaks at the Economic Club of New York on Wednesday in New York.