The President nominates the Federal Reserve Board with the consent of the Senate. But apparently the law on whether governors can be demoted by the President is

The President nominates the Federal Reserve Board with the consent of the Senate. But apparently the law on whether governors can be demoted by the President is unclear and may have to be resolved in Court. Apparently our last President asked his advisors for opinions on doing exactly this (surprise) [1], and like many things in our political system the answer turned out to be something more like "this would be a violation of norms" rather than "it is clearly illegal". So a sufficiently motivated President could do quite a bit to make an uncooperative Fed's life difficult, particularly if they enjoyed a sympathetic Congress and Supreme Court. The potential chaos alone makes threats much more credible. [1] https://archive.ph/y1uEv/again?url=https://www.bloomberg.com/news/articles/2019-06-18/white-house-explored-legality-of-demoting-fed-chairman-powell https://archive.ph/y1uEv/again?url=https://www.bloomberg.com...