Federal Reserve Chairman Jerome Powell declared Thursday he would not step down if requested by President-elect Donald Trump, emphasizing that such a removal would not be legally permissible. The statement came during a news conference following the Fed’s decision to cut interest rates by a quarter percentage point.
“No,” Powell responded directly when asked about potential resignation, adding that the president lacks the authority to fire or demote him. His current term extends until 2026.
The chairman’s stance reflects a history of tension with Trump, who appointed Powell in 2017 but later repeatedly criticized him for not easing monetary policy quickly enough during his first term. In March 2020, as COVID-19 spread across the nation, Trump claimed he had the authority to remove Powell from office.
More recently, Trump addressed presidential influence over monetary policy at the Economic Club of Chicago on October 15, telling Bloomberg News, “I don’t think I should be allowed to order it, but I think I have the right to put in comments as to whether the interest rates should go up or down.”
Powell addressed the impact of Trump’s recent election victory on Fed policy, saying that “in the near term, the election will have no effects on our policy decisions.” However, he acknowledged that future administrative policies could influence the Fed’s dual mandate of maximum employment and price stability.
With Republicans securing a Senate majority and the possibility of winning the House, Trump’s economic agenda may face fewer obstacles. Former Treasury Secretary Steve Mnuchin indicated that the president-elect’s focus would likely center on tax cuts and tariffs, particularly regarding China.
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