Howard Schneider

So, you know, read between the lines.

A, it's a pretty good outlook for the economy.

B, they're less worried about the job market taking a hit.

C, they think inflation is going to fade, but it's still high.

Put all that together and you get probably, you know, a pause that could last a while.

In the 100-year history of this Federal Reserve, this idea that governors can only be removed for cause, not on the basis of what they say about monetary policy, has never been defined or tested in a court.

The Supreme Court could provide that standard and say, what you need to do is prove X, Y, and Z.

They could say Article II, presidential authority, if he says it's cause, it's cause, she's fired.

I haven't spoken to many people who feel they're going to do that because there just was no process here at all leading up to this.

The courts have allowed the removal of former FTC Commissioner Rebecca Slaughter.

And in that decision, they had a big footnote, which a lot of the Fed watchers have sort of hung on,

saying that this does not have any implication for the Federal Reserve.

The Fed has obligations under aspects of monitoring and guarding the money supply that are part of congressional authority.

It's not a purely executive branch body.

It's not a purely

legislative branch body.

It's its own kind of thing.

A lot of people read that to say that the Supreme Court does intend to provide some sort of carve out.

They've sided with the executive branch with Trump in removing people from other independent agencies, quote unquote,

Keep in mind, they could just kick this all back to the district court.