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Supreme Court shields Powell from Trump's firing powers

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Supreme Court shields Powell from Trump's firing powers

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Intrigue and complexity are unfolding at the US Supreme Court. The justices have made it clear that the Federal Reserve is immune to personnel changes initiated by President Donald Trump, quelling speculation that Fed Chair Jerome Powell could be dismissed.

In its ruling on a recent case involving Trump's removal of two federal board members, the Supreme Court described the Fed as a "uniquely structured, quasi-private entity that follows in the distinct historical tradition."

Meanwhile, the court upheld Trump’s authority to fire the two National Labor Relations Board members who had challenged their dismissal.

The decision was closely watched by many stakeholders, concerned that it could set a precedent for the broader removal of federal officials, specifically Powell. The president has repeatedly criticized the Fed chair for not aggressively cutting interest rates.

Trump's remarks about Powell, coupled with his dismissal of labor board members, raised concerns that he might attempt to oust the central bank chief for opposing calls for immediate monetary easing. However, Powell remained characteristically composed. He stated that he is not worried about losing his job and intends to serve out his full term through May 2026.

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