Shock!! Trump's Legal Challenge: Can He 'Cut' Powell?
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Although Powell's term lasts until 2026 and federal law requires substantial justification for dismissal, Trump may still challenge this situation. **The legal interpretation of 'dismissal for cause' is vague,** and Trump may seek to gain more power through legal means, even attempting to 'downgrade' Powell, keeping him on the board but removing him from the chairmanship.
If Trump does not want to confront the courts, he can push for changes to the Federal Reserve Act through a Republican-controlled Congress, undermining the independence of the Federal Reserve. This action could reshape the economic landscape of the United States and even the world.
Market Turbulence: Threat to the Independence of the Federal Reserve
Trump's actions could have a significant impact on financial markets. The Federal Reserve's decisions directly affect the global financial environment, and historically, any challenge to the Fed's independence has triggered severe market reactions. During Trump's first term, Powell's statements directly led to a plunge in Bitcoin prices. Therefore, any attempts to undermine the independence of the Federal Reserve could plunge Wall Street and global markets into turmoil.
Through adjustments to the Federal Reserve's members, Trump may not only redefine U.S. monetary policy but also provoke a strong reaction from the global economy. The markets are already tense, and future political developments are worth the attention of all investors.
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