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Donald Trump has stepped up his attacks on Federal Reserve Chair Jerome Powell at the same time that the Supreme Court is considering a case that could make it easier for the president to fire him.The developments are occurring against a backdrop of wider turmoil in the economy and financial markets, brought on by Trump’s sweeping taxes on imports. Most economists worry that an assault on the Fed’s longstanding independence from politics would further disrupt markets and add to the uncertainty enveloping the economy.In comments at the White House Thursday, Trump suggested he has the power to remove Powell and criticized him for not aggressively cutting interest rates.“If I want him out, he’ll be out of there real fast, believe me,” Trump said. “I’m not happy with him.”All the scrutiny threatens the Fed’s venerated independence, which has long been supported by most economists and Wall Street investors. Here are some questions and answers about the Fed. Why does the Fed’s independence matter? The Fed wields extensive power over the U.S. economy. By cutting the short-term interest rate it controlswhich it typically does when the economy faltersthe Fed can make borrowing cheaper and encourage more spending, accelerating growth and hiring. When it raises the ratewhich it does to cool the economy and combat inflationit can weaken the economy and cause job losses.Economists have long preferred independent central banks because they can more easily take unpopular steps to fight inflation, such as raise interest rates, which makes borrowing to buy a home, car, or appliance more expensive.The importance of an independent Fed was cemented for most economists after the extended inflation spike of the 1970s and early 1980s. Former Fed Chair Arthur Burns has been widely blamed for allowing the painful inflation of that era to accelerate by succumbing to pressure from President Richard Nixon to keep rates low heading into the 1972 election. Nixon feared higher rates would cost him the election, which he won in a landslide.Paul Volcker was eventually appointed chair of the Fed in 1979 by President Jimmy Carter, and he pushed the Fed’s short-term rate to the stunningly high level of nearly 20%. (It is currently 4.3%). The eye-popping rates triggered a sharp recession, pushed unemployment to nearly 11%, and spurred widespread protests.Yet Volcker didn’t flinch. By the mid-1980s, inflation had fallen back into the low single digits. Volcker’s willingness to inflict pain on the economy to throttle inflation is seen by most economists as a key example of the value of an independent Fed. What do Wall Street investors think? An effort to fire Powell would almost certainly cause stock prices to fall and bond yields to spike higher, pushing up interest rates on government debt and raising borrowing costs for mortgages, auto loans, and credit card debt.Most investors prefer an independent Fed, partly because it typically manages inflation better without being influenced by politics but also because its decisions are more predictable. Fed officials often publicly discuss how they would alter interest rate policies if economic conditions changed.If the Fed was more swayed by politics, it would be harder for financial markets to anticipateor understandits decisions. So does that mean the Fed is completely unaccountable? Well, no. Fed chairs like Powell are appointed by the president to serve four-year terms, and have to be confirmed by the Senate. The president also appoints the six other members of the Fed’s governing board, who can serve staggered terms of up to 14 years, though most governors leave before the end of their terms.Those appointments can allow a president over time to significantly alter the Fed’s policies. Former president Joe Biden appointed five of the current seven members: Powell, Lisa Cook, Philip Jefferson, Adriana Kugler, and Michael Barr. As a result, Trump will have fewer opportunities to make appointments. He will be able to replace Kugler, who filled an unexpired term ending January 31, 2026.Congress, meanwhile, can set the Fed’s goals through legislation. In 1977, for example, Congress gave the Fed a “dual mandate” to keep prices stable and seek maximum employment. The Fed defines stable prices as inflation at 2%.The 1977 law also requires the Fed chair to testify before the House and Senate twice every year about the economy and interest rate policy. But can the president fire Powell? Powell says the law establishing the Fed does not allow a president to fire a chair except for cause. There is some complication in that Powell was separately appointed as a member of the Fed’s board of governors, and then elevated to the position of chairby Trump, in 2017.Most legal scholars agree that Trump can’t fire Powell from the Fed’s board of governors, but there is less agreement over whether a president can remove him as chair. In January, Michael Barr, who was vice chair for supervision, stepped down from that post but remained on the board to avoid a potential legal clash over whether Trump could fire him.Should Trump try to fire Powell anyway, the ensuing fight would almost certainly end up at the Supreme Court. What could the Supreme Court do? We may get an early sign of how the Supreme Court would decide it this summer. There is already a case before the court on the issue of whether the president can fire top officials at independent agencies.The case stems from Trump’s firings of two officials, one from the National Labor Relations Board and the other from an agency that protects workers from political interference. The Supreme Court last week let the firings stand while it considers the case. It could rule this summer that the president, as the head of the executive branch, could fire officials at any federal agency even if Congress had intended it to be independent.The case would overturn a 90-year old precedent known as Humphrey’s Executor, in which the court ruled that the president couldn’t fire such officials.Powell said Wednesday he is watching the case closely, adding that it might not apply to the Fed. Lawyers for the Trump administration, seeking to narrow the focus of the case, have argued that it doesn’t involve the Fed.Both the Trump administration and the Supreme Court justices have carved out exemptions for the Fed before. In February, the White House issued an executive order that placed several financial regulatory agencies, including the Fed and the Securities and Exchange Commission, more directly under the president’s control. Yet the order specifically exempted the Fed’s ability to set interest rates from that order.And in a case in 2023, Justice Samuel Alito said in a footnote that the Fed is a “unique institution with a unique historical background” that made it different than other independent bodies. If the court does give presidents more poer over the heads of independent agencies, it could potentially exempt the Fed. Christopher Rugaber, AP Economics Writer
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E-Commerce
The U.S. Consumer Financial Protection Bureau (CFPB), the agency created to serve as a watchdog for American consumers against predatory business practices, said on Thursday it planned to dismiss as much as 90% of its remaining workforce, resuming mass firings less than a week after a federal court ruling granted the Trump administration leeway in setting staff levels. Multiple agency sources said staff members had begun receiving formal notices on Thursday afternoon. A CFPB spokesperson confirmed the agency was moving to fire roughly 1,500 people across core divisions, including enforcement and supervision, leaving only 200 staff. Fox Business had earlier reported those numbers. The workforce action comes in the middle of legal action brought by an employee union and consumer advocates working to prevent what they said was the agency’s illegal destruction. In an emergency motion filed Thursday evening, lawyers for an employee union and consumer advocates told a federal judge the CFPB was flouting court orders requiring a “particularized assessment” prior to any such workforce reductions and that the agency retain enough staff to perform functions required by law. “It is unfathomable that cutting the Bureau’s staff by 90 percent in just 24 hours, with no notice to people to prepare for that elimination, would not ‘interfere with the performance’ of its statutory duties,” they said in the motion. According to one official notice seen by Reuters, the agency said the recipient’s dismissal would take effect in 60 days but that access to internal email systems and IT systems would be cut off on Friday evening. President Donald Trump and billionaire adviser Elon Musk called earlier this year for the CFPB’s elimination, accusing it of politicized enforcement, and with a court hearing showing the administration’s initial goal was to shut the agency down entirely. However, administration officials subsequently said the CFPB would continue to exist in some form, noting that Trump has nominated a new director. The White House did not immediately respond to a request for comment. Created after the 2008 financial crisis, the CFPB is the sole federal agency with power to enforce consumer financial laws at nonbank institutions such as mortgage originators and payment services. The agency, long criticized by conservatives, has been facing an onslaught of firings and changes under President Donald Trump. An appeals court last week partially reversed a decision handed down by a district court that ordered the administration to halt efforts to fire workers, scrap contracts and close offices. Democratic Senator Elizabeth Warren, who championed the creation of the CFPB, earlier this year said no one other than Congress could dismantle the agency and criticized Republican attempts to weaken the agency that has paid $21 billion in financial restitution to thousands of Americans. In a statement, Warren called the mass firings “yet another assault on consumers and our democracy by this lawless Administration.” (Additional reporting and writing by Pete Schroeder) Douglas Gillison and Tim Reid, Reuters
Category:
E-Commerce
Friday, April 18, 2025, is Good Friday. But when it comes to what places are open and closed on Good Friday, things can be a bit tricky. Thats because Good Friday is not a federal holiday but a religious one. It’s the Friday before Easter, which is always celebrated on a Sunday. Yet Good Friday is also a state holiday in select states. This means that public institutions may be closed in one state but open in another on Good Friday. Heres what you need to know about whats open and closed on Good Friday 2025. Is Good Friday a federal holiday? No. Good Friday is not one of the officially recognized federal holidays. Of the 12 federal holidays in 2025, the last one was Washingtons Birthday on February 17, and the next one will be Memorial Day on May 26. Is Good Friday a state holiday? Yesin some states, anyway. According to the Federal Times, Good Friday is a recognized state holiday in 12 states: Connecticut Delaware Florida Hawaii Indiana Kentucky Louisiana New Jersey North Carolina North Dakota Texas Tennessee In most of these states, public offices will likely be closed on Good Friday. Are banks open on Good Friday? Yes, most major banks should be operating as normal on Good Friday. This includes banks like Chase, Citibank, PNC, and more. Online banking services will be available via the banks website and smartphone apps, in addition to physical bank branches being open. Are ATMs open on Good Friday? Yes. ATMs will be open on Good Friday. However, as it is the start of a holiday weekend for many people, ATMs may get picked over sooner than usual. Is the post office open on Good Friday? Yes, as the United States Postal Service (USPS) is a federal organization, it will be open and operating as normal on Good Friday. This includes both at USPS branches and at home mail delivery. Is mail delivered on Good Friday? Yes. The USPS will deliver mail as normal on Good Friday. Are FedEx and UPS operating on Good Friday? According to FedExs holiday schedule, some FedEx delivery services will have a modified schedule on Good Friday, including its FedEx and FedEx Freight services. FedEx Office, FedEx Custom Critical, and FedEx Logistics will be open as normal. UPS says it will be operating pickup or delivery services on Good Friday. It also notes that UPS Store locations will be open. Is the stock market open on Good Friday? No. Major U.S. stock markets will be closed on Good Friday. This includes the New York Stock Exchange (NYSE) and the Nasdaq. Are schools open on Good Friday? Many schools should be closed on Good Friday, but its best to check with your school. Despite not being a federal holiday, many public schools choose to be closed on Good Friday. Most private, religious schools will also be closed. Are restaurants open on Good Friday? Most restaurants should be open on Good Friday. This includes well-known chains like McDonalds, Subway, Burger King, Arby’s, and Chipotle, which should be open. However, note that some franchise locations could be closed, as Chick-fil-A points out. Likewise, many sit-down restaurants should remain open, but you should call ahead first to make sure. Are retail stores open on Good Friday? A majority of big-box retail stores will be open on Good Friday. This includes major chains like Target, Costco, Best Buy, and Walmart. Are pharmacies open on Good Friday? You can expect most pharmacies to be open on Good Friday, including those found in Walgreens. However, pharmacies may have adjusted hours on Good Friday. Its best to check with your preferred pharmacy to confirm their hours on Good Friday. Are grocery stores open on Good Friday? Many regional grocery store chains should be open on Good Friday. However, they may have reduced hours. Its best to check with your grocery store directly to see what their operating hours are on Good Friday.
Category:
E-Commerce
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