It is not so easy to sack Powell
It is not so easy for trump to sack Powell because the Fed Reserve is an independent body. According to the 1935 US supreme court decision, trump has limited rights to sack the Fed Chief. In such a situation, the Fed Chief can be sacked legally only by giving any reason. These include misconduct, misbehavior or inefficiency.
Powell is not in a hurry to reduce interest ratesTrump, furious with Powell, is criticizing him fiercely these days. trump himself appointed Powell as the chairman of the US Federal Reserve during his first term and now trump is accusing him of playing politics.
In a program held in Chicago last Wednesday, Powell had said that trump has increased tariffs more than expected. This will increase the prices of things, which can lead to inflation and economic uncertainty. Powell, adopting a tough stance, said that he is not in a hurry to reduce interest rates. First he wants to see what effect Trump's tariff policy has on the economy.
Trump is putting pressure to reduce interest ratesMeanwhile, trump is putting pressure to reduce interest rates. After the european Central bank reduced interest rates, trump said, Powell should have also reduced interest rates like the ECB long ago and now he should definitely reduce it. oil prices and grocery prices have come down, eggs have become cheaper. America is getting richer because of tariffs. Powell's dismissal can't come soon enough.
