Federal Reserve Chair Jerome Powell firmly rejected the idea of resigning if asked to do so by President-elect Trump during a press conference on Thursday. Powell’s term as chair runs through 2026, and when pressed on whether he would be legally required to leave, he stated simply, “No.”
He clarified that under the law, the president does not have the authority to fire or demote him or other Fed governors in leadership positions, emphasizing the Federal Reserve’s independence.
Although Powell was appointed by President Trump in 2017, the two have had a strained relationship, with Trump frequently criticizing Powell for not cutting rates quickly enough.
Despite this, Powell was reappointed by President Biden in 2021, although he has faced criticism from progressives who argue that his rate hikes have hurt average Americans.
Earlier this year, Trump suggested Powell might be politically motivated, implying that he could lower rates to help Democrats in the 2024 election.
However, after the Fed cut rates by 50 basis points in September, Trump lost the election to Vice President Harris.
Despite his earlier remarks, Trump later softened his position, stating that while he should be able to discuss interest rates, it doesn’t mean he is making the decisions.
Peoplesmind
