This is the most insane thing Trump has done. Few people understand this. This is a transparent power grab by the executive office.
The President is elected once every 4 years. A seat with such a clear short-term incentive structure should NOT have the power to set interest rates. This is being done because Trump is upset that interest rates aren't zeroed out for the twentieth year in a row.
Whether you like the Fed or not, Powell has done a decent job. He was put in a difficult position, but he proved to be the first Fed Chair in decades that had to balls to raise rates and clamp down on inflation. The executive office can't just slap trumped up charges on the guy because he had to hike rates. If we are being honest, he should have hiked rates even more.
There is a lot of valid discussion about the role of the Fed, whether there should be more democratic oversight, etc. But this is NOT the way. If the executive office can just bully the Fed into plunging rates any time they are in trouble before an election, we are going to wind up with hyperinflation.
