Breitbart News economics editor John Carney said Friday on Fox Business Network’s “Kudlow” that President-elect Donald Trump will have the power to remove Federal Reserve Chairman Jay Powell once in office.
Guest host David Asman said, “Jay Powell was talking yesterday about fiscal responsibility and of course some people wonder about the responsibility of the Fed to inform Congress and the White House when they’re not being fiscally responsible. But let me just roll that tape and get your response.”
Powell said, “The U.S. fiscal, federal government’s fiscal path, fiscal policy is on an unsustainable path. You’ve got a very large deficit at, you’re at full employment and that’s expected to continue. So it’s important that we, you know, that to be dealt with. It is ultimately a threat to the economy.”
Asman said, “Yeah, well, where was he with the rollout of all that deficit spending of the Biden administration?”
Carney said, “Right, we needed to hear from him back in 2021 when the Biden administration was rolling out the American Rescue Plan, another two trillion dollars.”
He added, “They really were mum about it. In fact they covered for it. They did monetary accommodation which meant that the Fed got they got to keep doing all this and that drove inflation through the roof and then they said inflation wouldn’t be persistent that it was going to be transitory. So they provided the cover the Biden administration needed to keep on spending and now he’s talking about you know unsustainable path. Donald Trump should ignore him. I think Donald Trump actually has the legal authority to remove him. I do not believe that executive branch officers, which essentially is what he is, he’s appointed by the president, can serve once they have lost the confidence of the president. I think the Supreme Court would side with him. Donald Trump won’t do that though. He’s not going to remove Jay Powell partly because he would end up in a court fight that might not be resolved until Jay Powell’s thing is already over.”
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