Fed Spokesperson: Federal Reserve Act gives the president the power to remove “for cause”

• Congress, through the Federal Reserve Act, directs that governors serve in long, fixed terms and may be removed by the president only “for cause.”

• Long tenures and removal protections for governors serve as a vital safeguard, ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people.

• The Federal Reserve will continue to carry out its duties as established by law.

• Fed’s Cook has indicated through her personal attorney that she will promptly challenge this action in court
• As always, the Federal Reserve will abide by any court decision

The White House responded:

• The president exercises lawful authority to remove a Fed Gov. for cause
• Says that he would abide by the court’s decision

This article was written by Greg Michalowski at investinglive.com.