The Node: The Plot to Fire Powell

Key Points

1. Donald Trump is unhappy with Jerome Powell for not further easing monetary policy after cutting interest rates by 75 basis points ahead of the 2024 election.

2. Powell maintains that Trump lacks the legal authority to remove him from his position, as Fed chairs can only be dismissed 'for cause.'

3. Critics, including Republican members of Congress and former Federal Reserve governor Kevin Warsh, are calling for Powell's removal, citing his actions over recent months.

4. Rumors about Powell's potential firing intensified after reports of a 'formal process' to replace him, though Trump later denied plans to dismiss him.

5. Market indicators suggest a low probability of an interest rate cut at the next FOMC meeting in July, but higher odds for September.