Powell: "I won't quit"

[George K]

AFAIK, Trump has not considered asking for Powell's resignation.

https://www.cnbc.com/2024/11/07/powell-trump.html

Federal Reserve Chairman Jerome Powell said Thursday that he will not step down if President-elect Donald Trump asks for his resignation.

When asked whether he would resign if requested to by Trump, the Fed chair simply said: “No.” Powell subsequently told reporters that the president does not have the power to fire or demote him.

“Not permitted under the law,” Powell told reporters at a news conference, after the Fed cut interest rates by a quarter percentage point.

I'm profoundly ignorant about this stuff. DOesn't POTUS appoint the head of the Fed? Who does he report to? Is there a mechanism for removing him? If POTUS is not the person, Congress? Is the Fed accountable to anyone? Is it a real government agency with, you know accountability to the voters, Congress, etc.?

[Jolly]

POTUS appoints the Board of Governors. Each governor stays until the end of his term (unless he decides to resign).

[George K]

Once appointed, is there any accountability?

I'm not saying that Powell should be ousted - at all. Just wondering about the Fed. What other "independent" parts of the US government exist? Or, is the Fed not part of the government?

[Jolly]

I've heard the Board of Governors described as "Independent within the government".

Weird.

[George K]

@Jolly said in Powell: "I won't quit":

I've heard the Board of Governors described as "Independent within the government".

Weird.

I'm just an old guy who breathed too many halogenated hydrocarbons for 40+ years.

What the actual fuck does that mean?

[Jolly]

@George-K said in Powell: "I won't quit":

@Jolly said in Powell: "I won't quit":

I've heard the Board of Governors described as "Independent within the government".

Weird.

I'm just an old guy who breathed too many halogenated hydrocarbons for 40+ years.

What the actual fuck does that mean?

That means that once appointed, unless you catch them in bed with a live boy or a dead woman, they ain't going anywhere they don't want to go.

[George K]

@Jolly said in Powell: "I won't quit":

That means that once appointed, unless you catch them in bed with a live boy or a dead woman, they ain't going anywhere they don't want to go.

Well put. I haven't heard that expression in a while.

Continuing the thoughts on accountability, who has the power to dissolve the Fed and replace it with something else, assuming its continued existence is a good thing?

[taiwan_girl]

@George-K said in Powell: "I won't quit":

What other "independent" parts of the US government exist?

Supreme Court?

[George K]

@taiwan_girl said in Powell: "I won't quit":

@George-K said in Powell: "I won't quit":

What other "independent" parts of the US government exist?

Supreme Court?

No. The Supreme Court is a branch, one of three, of the government as established by the constitution as part of the judiciary. It is co-equal with the executive and legislative branches.

Where does the Federal Reserve fit into that? Which one of the three branches does it fall under?

[jon-nyc]

I don’t know the particulars about removing a fed governor or chair but I can say it is very very independent.

The Federal Reserve Board of Governors (full disclosure, where one of my sisters works) is technically a Government Agency. But they don’t own the banks in the system, they just have an oversight role.

The individual banks are “owned”, but not really, by member banks from that region. But those banks have limited rights, can’t sell the stock, can’t set policy, etc.

Ultimately it’s accountable to congress who created it and could amend the legislation if it wanted to.

[jon-nyc]

I consulted for the NY Fed, the one regional branch with a special function that puts it above the others - it actually is a market participant that literally implements Fed policy by buying and selling bonds (“open market operations”, in the vernacular)

In my experience they behave as if they were a government agency when it’s convenient and they act like it’s private when it suits them.

[taiwan_girl]

INteresting. I think that the ability to stay pretty independent is, in the long term, very good for the US economy.

[George K]

@jon-nyc said in Powell: "I won't quit":

In my experience they behave as if they were a government agency when it’s convenient and they act like it’s private when it suits them.

Perfect.

[jon-nyc]

@taiwan_girl said in Powell: "I won't quit":

INteresting. I think that the ability to stay pretty independent is, in the long term, very good for the US economy.

It is. Looking historically non-independent central banks ending up serving the interest of the political career of the executive rather than the country. It’s inevitable.

[taiwan_girl]

President Trump, the great economic thinker that he is, gives his opinion on Chairman Powell. As always, he keeps is classy.

[89th]

Bloody hell another thread I started reading, not realizing the posts were from last year. And then I get excited because I thought @George-K was posting!

[Doctor Phibes]

Apparently we're all getting rich. I'm still waiting for that shit to trickle down.

[Jolly]

Work harder.

[Doctor Phibes]

@Jolly said in Powell: "I won't quit":

Work harder.

Fuck off, I've been here since 6am.

[Jolly]

Work harder. I've already planted two rows of peas.