The Trump-era Finance Thread

[quote] Jay Powell says Donald Trump couldn't fire him even if he tried

President-elect Donald Trump has sent mixed signals for years on whether he would aim to fire or demote Fed Chair Jerome Powell when he reenters the Oval Office next year.

But Powell himself laid down a marker Thursday that he won’t be going anywhere, even if Trump tried.

"Not permitted under the law," the central bank chair said Thursday in curt but clear responses to reporters who asked about his views on any legal authorities Trump might have in terms of firing or demoting him or any other top Fed officials.

"No," he said at another point in a press conference on the question of whether he would leave.

It could be a point of conflict in the months ahead. Trump has signaled he may not be inclined to fire Powell but has also maintained he has that power.

For his part, Trump reiterated the idea of firing Powell in a 2020 news conference when he bluntly said, "I have the right to remove" Powell.

He added that he could also demote Powell from his position as chair, "put him in a regular position, and put somebody else in charge."

It’s an unsettled legal question, though, with many experts falling on Powell's side of the argument.

At issue is Section 10 of the Federal Reserve Act. The law states that each member of the board shall hold office for 14 years "unless sooner removed for cause by the President." The statute doesn't have any language that specifically addresses the chairman of the Board of Governors.

The question that has been debated for years is what exactly constitutes "for cause."

The language in the law is plainly more restrictive for Fed officials when compared with the arrangements of cabinet officials and other members of a presidential administration, who are often described as working "at the pleasure" of the president.

Legal experts have tended to say that a simple policy disagreement wouldn't rise to the level of cause, but it's a standard that hasn't been tested with a judge.

They've loaded the courts, so I think Powell will be out.

I wonder if Trump's own tactics will backfire, with the legal system clogged.

NY Times: What a Second Trump Term Could Mean for Your Money

Thanks, r8.

Meeting with my financial advisor next week and moving everything I can out of the market.

Fuck the coming collapse.

Yep, diversification means something completely different now. I just exited as many areas that I think will be volatile. Investing is one thing, but these fuckers are going to turn it into a casino more than ever.

I'm putting everything in Truth Social stock! Our wonderful President Trump will make us all rich!

Thanks, OP. I’m agonizing over this. My non-401k investment account has really recovered since 2021. I’m thinking of cashing in the gains and leaving the 401k alone. When things crash, I can swoop in.

But it would be possible that the crash is farther away than we think and the basement is higher than the ceiling now. I hate that these risks are going to determine when and if I can retire.

It will take about a year, I think, before the tariffs start to bite and the market tanks.

That being said, I still want out NOW, before it tanks.

It took me FIFTEEN FUCKING YEARS to recover from Dumbya’s market crash with HIS dumb fuckery.

Liz Truss tanked things in days. I'm not counting on any delays. There's also non-financial events, like the purge of immigrants that could throw a wrench in things.

Very true, r9. Which is why I want out NOW.

IDK if there will be any forced delay in selling off so much stock or moving everything to CDs/T-notes, but it won’t be 60 days.

Yep, it's pretty clear there's going to be some shock and awe moves the moment the Orange Menace swears in, so all bets are off IMO.

But Trump will freak if the market collapses. It's his source of pride. Which is not to say he'll be able to fix it.