Can Trump really fire Powell? The power games behind this question are not simple!
In Powell's response, he firmly stated that no matter how much Trump demands, he will not resign. Imagine a president giving orders while the Federal Reserve Chairman remains firmly in place; this scene leads one to ponder: what gives Powell such confidence?
In fact, several rhetorical questions during the press conference directly addressed the issue of power balance between the Federal Reserve and the White House. Particularly when a reporter asked whether Trump had the legal power to dismiss the Federal Reserve Chairman, Powell succinctly responded with a series of “no’s”: no resignation, no need to obey orders, and not legal. This resolute series of refusals reflects the independence of the Federal Reserve within the U.S. financial system and demonstrates Powell's firm stance on defending the Federal Reserve's independence.
But let’s not forget that the possibility of Trump returning to politics may mean a more intense struggle. A strong president wants to exert pressure on the Federal Reserve to lower interest rates, while the independence of the Federal Reserve faces yet another challenge. Looking back at history, markets are always turbulent during power confrontations. This time, can Powell's repeated “no” withstand the potential political storm?
From these confrontations, we can see not only the direction of policies but also the deeper power struggles behind them—markets and investors may need to hold their breath more than ever.
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