Scholar: The White House is creating legal reasons for Powell's resignation
PANews reported on July 12 that according to Jinshi, the White House is putting pressure on Powell on the renovation of the Federal Reserve headquarters building. Nick Timiraos, the "Federal Reserve Mouthpiece", pointed out in an article that Federal Reserve researchers said that the latest developments are, at best, a transparent attempt to open up a new pressure position on the Federal Reserve, and at worst, a dangerous step to create legal grounds for Powell's resignation.
"We are at a critical moment in the history of the Fed," said Peter Conti-Brown, a scholar at the University of Pennsylvania who studies the Fed. "It is clear to me that the Trump administration has now used a variety of mechanisms to concoct a post-hoc explanation for Powell's removal." Investors are taking notice because firing a Fed chair for political reasons would break with decades of established norms that have underpinned global confidence in the dollar. "If President Trump and his allies launch this kind of attack on the Fed, they will bring severe instability to virtually all aspects of the global economy," Conti-Brown said.
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