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Trump Asked White House Lawyers for Options on Removing Powell

  • White House explored legality of demoting Powell in February
  • Fed spokeswoman says chairman can only be removed ‘for cause’
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Bloomberg Intelligence’s Ira Jersey and Bloomberg’s Alex Wayne report on the Powell demotion discussions.(Source: Bloomberg)
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President Donald Trump asked White House lawyers earlier this year to explore his options for removing Jerome Powell as Federal Reserve chairman, according to people familiar with the matter, in what would be an unprecedented move.

In February, the White House counsel’s office examined the legality of stripping Powell of his chairmanship and leaving him as a Fed governor, less than two months after Trump discussed firing him, the people said. The review came as the president repeatedly expressed public frustration with the Fed’s interest-rate increases.