A House Republican wants to make it easier for President Donald Trump to fire Federal Reserve Chair Jerome Powell.
Trump has threatened to fire Powell before because he didn’t lower interest rates fast enough. At one point, Trump even wrote a letter to remove him. But recently, the president said he would let Powell finish his term, which ends next May.
Still, Trump is already looking for someone to replace him.
However, firing Powell isn’t simple. The Federal Reserve Act of 1913, which created the central bank, says the president can only fire the chair “for cause.” This means Powell would have to do something seriously wrong for Trump to remove him.
Rep. Buddy Carter, R-Ga., wants to change the law so Trump could fire Powell more easily.
“Federal Reserve Chair Jerome Powell needs to go, and the president should have the power to make that decision without question,” Carter told Fox News Digital. “He’s been too late to cut rates, and it is directly harming the American people.”
Carter plans to introduce a bill called the Timely Oversight of Operations, Liquidity, Accountability, Targeting, and Effectiveness Act, or the TOO LATE Act — a reference to Trump’s nickname for the Fed chair. The bill would list several reasons why the president could fire Powell.
According to the bill, which was first obtained by Fox News Digital, Trump could remove Powell if, for two straight quarters, the federal funds target rate is off by more than 200 basis points from an average of certain benchmarks.
Those benchmarks include the implicit price deflator for personal consumption, the difference between the yield of a five-year Treasury bond and a five-year Treasury Inflation Protected Security, and the difference between unemployment estimates from the Federal Reserve Board and the Congressional Budget Office.
If any of these benchmarks are reached, Trump could write a letter explaining why he wants to remove Powell. Congress would then review it within 30 days through the House Financial Services and Senate Banking, Housing and Urban Affairs committees.
“With this bill, we will restore proper oversight of the Federal Reserve and give the president another tool in his tool chest to strengthen and grow the economy,” Carter said.
