Speculation about the possible dismissal of Federal Reserve Chair Jerome Powell has been revived following recent statements by politicians. We discuss the main events and facts.
Congresswoman Luna's Statement
On July 16, Florida Congresswoman Anna Paulina Luna speculated on social media that Jerome Powell's firing is 'imminent.' While she did not provide evidence to support her claim, it attracted attention on Polymarket, where the odds of Powell’s ousting rose from 23% to 27%, though quickly fell back to 25%.
Legal Aspects of Dismissal
Removing the Fed Chair is not straightforward. The Federal Reserve Act stipulates that a Fed governor can only be removed for serious issues, such as misconduct or failure to perform duties. A Supreme Court ruling from 1935 reinforced the Fed's independence by limiting presidential power to dismiss agency heads.
Markets Remain Stable
Despite the brief excitement on Polymarket, financial markets remained stable. Bitcoin and the stock market did not show significant changes, indicating traders' confidence in Powell's continued leadership.
While speculation about Jerome Powell's dismissal has intensified, current legal frameworks and market reactions suggest his stable position as Fed Chair.
