Now he accuses him of fraud on a site, he shows his letter of dismissal in public: does Trump really have the means to “turn” the chief of the Fed Jerome Powell?

The president of the United States, Donald Trump, increased pressure on the head of the Federal Reserve (Fed) this week, accusing Jerome Powell of potential “fraud” in the renewals of the institution in Washington, without specifying if he was considering discarding it.

After regularly criticizing Powell’s “too late” elections, as he nicknamed, Donald Trump opened a new one in front of leaning over this work, which has already cost $ 2.5 billion, and that the White House tenant would be instrumentalized.

The US president was in the week until he suggested that he could see how to fire Jerome Powell based on work management, before retroply.

The New York Times even reported that the US president had already written the dismissal letter and even showed it to the elected officials at a meeting this week.

“You are fired” (“You are fired”) has almost become a slogan for the US president. This prayer refers to one of its most famous replicas of the Television program The Amprentice that increased its notoriety from 2004.

Can Trump shoot Powell?

A possible dismissal of the president of the Fed would not be preceded and it will be necessary for Donald Trump to justify this decision, providing tangible evidence so that it can be legally acceptable.

Because if the US president can appoint that of the Fed, what Donald Trump did with Jerome Powell during his first term, the independence of the institution goes through his theoretical irremovability, which allows the central political bank to isolate.

But the legal provisions specify that in case of non -compliance with duty, embezzlement or “inefficiency”, the White House can theoretically replace a federal official, considers the law professor at Columbia University, Lev Menand. It is still necessary to demonstrate the breach of duty.

It is true that the work has exceeded the initial envelope, but Lev Menand recalls that the cost of construction materials has increased considerably under the effect of inflation, and renewing historical buildings in the US capital is necessarily expensive.

“According to the information at the time available, there is no justification to say goodbye to Jerome Powell,” he said, saying that if Donald Trump made this decision despite everything, the Fed head will have to know the charges and can legally challenge them, remaining in office meanwhile.

What are the accusations?

Before returning to the White House, Donald Trump accused the Fed for not having reduced his rates enough, the criticisms that have been strengthened while the Central Bank has been waiting, and see since he faced himself, hoping to see the effects of his customs duties on inflation.

According to him, reduction rates could reduce the cost of US debt, which flies.

But its angle of attack now intends to be a technical one, which suggests that Jerome Powell does not properly manage the funds assigned to the renovations of the institution’s buildings.

Since then, the White House has asked the Fed to justify the cost of the site, that Jerome Powell made Thursday in a letter, ensuring that she had asked for a new audit of the inspector general of the Fed, and pointed out that the buildings “needed significant structural repairs”, specifying that a “vip or elevator lunch” had been planned.

What would be a dismissal?

In a second step, investors could anticipate “a strong fall in the Fed rates”, which would support the economy, which would support the markets, he adds.

However, it is not certain that Donald Trump can easily achieve his objectives to reduce rates in case of Jerome Powell’s departure, to the extent that decisions make the Monetary Policy Committee (FOMC), which has 12 voting members.

The other members must continue to develop their decisions about the available macroeconomic data and their own judgment on the state of the economy of the United States, seeking to take into account the double objective of the Fed, low inflation and full employment, anticipates Padhraic Garvey.

But the dollar could be under pressure, but “in the immediate future the credibility of the Fed is intact, which should last at least while Jerome Powell remains in office.”