Fact check: Can a Federal Reserve chair be removed by Congress?

1. Summary of the results

Based on the analyses provided, Congress cannot directly remove a Federal Reserve chair. The removal authority lies with the President, but with significant limitations. According to the Federal Reserve Act of 1913, a Federal Reserve governor (including the chair) can only be removed by the president "for cause", which has been interpreted to mean inefficiency, neglect, or malfeasance while in office ^{[1] [2]}. This "for cause" standard has historically been understood to mean gross misconduct or dereliction of duty ^{[2] [3] [4]}.

The Supreme Court has recognized that the Federal Reserve is a "uniquely structured, quasi-private entity" with its own distinct historical tradition, which may set an even higher bar for removal compared to other independent agencies ^[5]. Any attempt to remove a Federal Reserve chair without proper cause would likely face legal challenge ^[3].

2. Missing context/alternative viewpoints

The original question lacks several crucial pieces of context:

• Congressional oversight role: While Congress cannot directly remove a Fed chair, the analyses suggest that Congress established the framework limiting presidential removal authority through the Federal Reserve Act of 1913 ^{[1] [2]}. This indicates Congress has an indirect role in protecting Fed independence.
• Current political tensions: The analyses reference recent events involving President Trump's attempts to fire Federal Reserve Governor Lisa Cook, with Cook stating "he has no authority to do so" ^[2]. Congressman Al Green condemned this action, emphasizing that Fed governors' lengthy tenures are designed to insulate the board from political pressure ^[6].
• Institutional independence: The analyses highlight that the Fed's structure is specifically designed to maintain independence from both executive and legislative political pressures, which is fundamental to its monetary policy effectiveness.

3. Potential misinformation/bias in the original statement

The original question itself does not contain misinformation, but it could lead to misunderstanding by implying that Congress might have direct removal authority over Fed chairs. The question fails to acknowledge that:

• The separation of powers specifically limits Congress's direct authority over Fed personnel decisions
• The "for cause" standard creates a high legal threshold that protects Fed independence
• Recent political attempts to circumvent these protections have faced institutional resistance and legal challenges ^{[2] [6]}

The framing could benefit from clarifying that while Congress created the legal framework governing Fed governance, it intentionally limited its own direct intervention powers to preserve monetary policy independence.