Aug 26, 07:03 PM

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.

#Federal Reserve #Board #Federal Reserve Act #Fed #Congress

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First Squawk@FirstSquawk
1 year ago
Fed spokesperson: Long tenures and removal protections safeguard independence, ensuring monetary policy is driven by data, analysis, and long-term U.S. interests.
First Squawk@FirstSquawk
1 year ago
Fed spokesperson: Governors serve fixed terms under the Federal Reserve Act; president may remove them only for cause.
RedboxGlobal@RedboxWire
1 year ago
Fed Spokesperson States Governors Have Set Terms Under Federal Reserve Act; President Can Only Remove Them for Specific Reasons. 🏦🇺🇸 Fed Spokesperson Says Long Tenure and Removal Protections Help Keep Independence, Making Sure Monetary Policy Is Based on Data and Long-Term U.S.

Fed Cites Statutory Guardrails Protecting Governors From Political Firing

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