GOP House Representative proposes legislation to streamline Trump's ability to dismiss Fed chairperson

The US House of Representatives is considering a bill introduced by Rep. Buddy Carter, a House Republican, that aims to make it easier for President Donald Trump to remove Jerome Powell as the Federal Reserve Chair. The proposed bill, known as the TOO LATE Act, seeks to modify the Federal Reserve Act to provide the president with a list of causal reasons to fire Jerome Powell.

The TOO LATE Act sets specific benchmarks for evaluating the performance of the Federal Reserve Chair. These benchmarks include the implicit price deflator for personal consumption expenditures, the difference between the yield of a five-year Treasury bond and the yield of a five-year Treasury Inflation Protected Security, and the difference between estimates of unemployment by the Federal Reserve Board and the projections of the Congressional Budget Office.

If either of these benchmarks is hit, President Trump could write a letter giving a reason for removing Powell, which would then be submitted to Congress and reviewed by the House Financial Services and Senate Banking, Housing and Urban Affairs committees within 30 days.

The proposed changes to the Federal Reserve Act by Rep. Buddy Carter are not fully detailed in the article. However, it is clear that the bill intends to expand or clarify the President's authority to dismiss the Fed Chair, potentially in response to Trump's criticism of Powell's handling of interest rates and monetary policy.

Trump has previously threatened to fire Powell for not lowering interest rates, expressing his dissatisfaction with the current state of the economy. Rep. Buddy Carter shares these sentiments, believing that Powell has been too late to cut rates and that it is directly harming the American people.

The Federal Reserve Board of Governors declined to comment when reached by Fox News Digital regarding the TOO LATE Act. Jerome Powell, the Federal Reserve Chair, testified before the Senate Committee on Banking, Housing and Urban Affairs but did not address the proposed bill directly.

Larry Kudlow, a prominent economic advisor to President Trump, discussed the Federal Reserve's interest rate moves on 'Kudlow' on FOX Business. The introduction of the TOO LATE Act indicates Republicans' support for Trump's move to skirt Congress in the DC crime crackdown.

The legal path to firing Powell, should Trump change his mind, is complicated due to the Federal Reserve Act of 1913, which stipulates that the president can only fire the chair "for cause." The TOO LATE Act seems to address this issue by providing specific benchmarks that, if met, could be considered as "cause" for removal.

Rep. Buddy Carter believes that Jerome Powell needs to go and that the president should have the power to make that decision without question. The TOO LATE Act aims to restore proper oversight of the Federal Reserve and give the president another tool to strengthen and grow the economy.