Part 4/11:
Indeed, Powell has reaffirmed that the Fed’s independence is protected by law, explaining that the Fed chair can only be removed for “cause”—a term that generally refers to serious misconduct rather than disagreements over monetary policy. Despite this legal safeguard, President Trump’s public and private inquiries into whether he could dismiss Powell underscore a mounting concern that the central bank’s autonomy is under threat. The possibility of removing Powell, or at least exerting influence over their decisions, introduces a dangerous precedent that could destabilize not just U.S. markets but global financial stability.