Donald Trump claimed he could fire Federal Reserve chair Jay Powell, drawing attention to the 1935 Supreme Court precedent, Humphrey’s Executor, which protects independent agencies from political dismissals. Powell, who intends to serve his full term until May 2026, emphasized the Fed’s legal independence in setting interest rates. A related case involving Trump’s past firings of two less prominent board members is pending in the Supreme Court, with potential implications for the perceived independence of the Federal Reserve and market reactions to any ruling.
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