Scholar: White House is creating legal grounds for Powell's dismissal

On July 12, according to Jinshi Data, the White House is putting pressure on Powell regarding the renovation of the Federal Reserve building headquarters. An article by "Federal Reserve mouthpiece" Nick Timiraos pointed out that Federal Reserve researchers said that the latest developments are, at best, a transparent attempt to open up a new pressure front against the Federal Reserve, and at worst, a dangerous step to create a legal basis for Powell's removal. "We are at a critical moment in the history of the Federal Reserve," said Peter Conti-Brown, a University of Pennsylvania scholar who studies the Federal Reserve. "It seems clear to me that the Trump administration is now using various mechanisms to fabricate an after-the-fact explanation for Powell's removal." Investors are taking note of this because firing the Federal Reserve Chairman for political reasons would break decades of established norms that underpin global confidence in the dollar. "If President Trump and his allies launch this attack on the Federal Reserve, they will bring serious instability to almost every aspect of the global economy," Conti-Brown said. [Deep Tide TechFlow]