The Fed: Trump on demoting Federal Reserve chief Powell: ‘Let’s see what he does’

Fed Chairman Jerome Powell with Treasury Secretary Steven Mnuchin last fall.

The White House explored the legality of demoting Fed Chairman Jerome Powell in February, according to a report by Bloomberg News.

Citing people familiar with the matter, the report said the White House general counsel’s office weighed the legality of stripping Powell of his chairmanship of the central bank, and leaving him as just a Fed governor.

The review came after President Donald Trump spoke of firing Powell, the report said.

Bloomberg said it didn’t know the result of the administration’s review.

Asked about the report, Larry Kudlow, the director of the National Economic Council, said Trump is not planning to demote Powell but didn’t deny the report.

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