White House Explored Demoting Fed Chairman Powell
|Federal Reserve Board
Chairman Jay Powell
UPDATE BELOW: Larry Kudlow responds
The White House explored the legality of demoting Federal Reserve Board Chairman Jerome Powell in February, according to a report by Bloomberg Television.
Citing people familiar with the matter, the report said the White House general counsel’s office weighed the legality of stripping Powell of his chairmanship of the central bank, and leaving him as just a Fed governor.
The review came after President Donald Trump spoke of firing Powell, the report said. Bloomberg said it didn’t know the result of the administration’s review.
Trump is a mad monetary inflationist and Powell is just a moderate inflationist. And therein lies the problem. Trump wants someone who is as mad a money printer as he is.
Larry Kudlow, the director of the National Economic Council, said Trump is not planning to demote Powell.
Kudlow refused to confirm or deny the report but said it is no longer relevant.
“It’s a six-month-old story,” he told reporters. “It allegedly happened six months ago and it’s not happening today and therefore I have nothing to say about it. It is what it is.”