Repeated pressure! U.S. House Speaker: Disappointed with Federal Reserve Chairman Powell
U.S. House Speaker Johnson expressed disappointment with Federal Reserve Chairman Powell and is considering amending the Federal Reserve Act. He is unsure whether the president has the authority to remove Powell and emphasized the need for careful study before making any legal changes. Johnson also mentioned an investigation into the renovation costs of the Federal Reserve building, believing that a review is appropriate. The Trump administration had repeatedly mentioned the possibility of removing Powell to pressure for interest rate cuts, but Trump stated that it is unlikely to carry out this plan
On Wednesday, the "third person" in the United States, House Speaker Johnson, expressed his disappointment with Federal Reserve Chairman Powell.
In an interview with the media, when asked if he supported Trump in firing Powell, Johnson stated he was unsure whether the U.S. President had the legal authority to dismiss the Federal Reserve Chairman:
But I can say that I do feel, can I use the word "disappointed"?
Johnson also indicated that he would consider amending the Federal Reserve Act, established in 1913, which set up the central banking system.
It should be noted that Johnson's consideration of amending the Federal Reserve Act is typically resisted by Federal Reserve officials. The last major revision of this law was completed in the 2010 Dodd-Frank Act, which was introduced by the U.S. Congress to strengthen regulation of large banks following the financial crisis.
However, Johnson emphasized that the key to modifying the laws related to the Federal Reserve and its powers lies in the details:
“I’m not even sure where the original constitutional authority of the Federal Reserve comes from,” Johnson said, who was a constitutional lawyer. “There may indeed be a need for reform, but we must study this matter very seriously before Congress intervenes to ensure that this is something we have the authority to handle. You don’t want to act hastily.”
When mentioning the investigation into the renovation costs of the Federal Reserve's downtown office building and Treasury Secretary Bessent's concerns about the Federal Reserve's "expansion of functions," Johnson stated:
I think all reviews are appropriate.
Trump and his administration officials have repeatedly mentioned this year that they might attempt to dismiss Powell to pressure the Federal Reserve into cutting interest rates. Recently, the Trump administration has frequently referred to the Federal Reserve's $2.5 billion renovation of its office building and the cost overruns, increasing pressure on Powell. Trump even convened Republican lawmakers in his office last week to discuss this matter; however, he later stated that it was "extremely unlikely" he would actually carry out this plan.
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