Trump can only dismiss a member of the Federal Reserve Board of Governors for "just cause".

[Trump can only dismiss Federal Reserve Board of Governors for "cause"] Trump announced that he has dismissed Federal Reserve Board Governor Cook, a move unprecedented and marking a significant escalation in his attack on the Fed. Trump's actions push the Federal Reserve system into uncharted territory and could likely trigger a legal conflict that may eventually reach the Supreme Court. The Federal Reserve Act of 1913 limits the president's unilateral power to dismiss Federal Reserve Board members, stating that the president can only do so "for cause." Although the law does not specify what constitutes "cause," it has historically been understood to mean misconduct or dereliction of duty. If Trump ultimately succeeds in dismissing Cook, he will be able to nominate her successor and reshape the Federal Reserve Board in the coming years.

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