Fed Cites Statutory Guardrails Protecting Governors From Political Firing

The Federal Reserve underscored the statutory protections that shield its Board governors from political interference, saying the officials serve long, fixed terms and can be removed by a U.S. president only “for cause,” as stipulated in the Federal Reserve Act. A Fed spokesperson said the tenure and removal safeguards were designed by Congress to preserve the central bank’s independence, ensuring that monetary policy decisions rest on economic data and long-term national interests rather than short-term political pressures. The spokesperson added that the central bank will comply with any court ruling on the matter, without elaborating on the specific litigation referenced.