US President Donald Trump may be unhappy with Federal Reserve Chairman Jerome Powell, but he does not have the power to dismiss the president of the central bank, Morgan Stanley said.
"The president can appoint a president, but once the president is confirmed, he is eliminated and the only way to dismiss a president is literally if they break the law." Congress will have to find a cause to dismiss them office by a vote and a procedure, "CNBC's Sri Jegarajah, Ellen Zentner, US chief economist at Morgan Stanley, told CNBC on Thursday.
US law says Fed officials, as well as those of other independent agencies, can be "dismissed for reasons," according to a report released Wednesday by the Washington Post. The "cause" often means more than a general policy disagreement with the president, the post added.
Until now, no Fed president has been removed from office by a president, according to the Post.