Powell says he wouldn’t step down if Trump asked
Federal Reserve Chair Jerome Powell, whose term ends in 2024, said Thursday that he would not step down even if President-elect Trump requested it of him.
When asked to elaborate and if he would be legally required to leave, Powell, who was appointed by the president-elect during his first term, said, “No.”
Powell later said it is “not permitted under the law” for the president to fire or demote him or any of the other Fed governors with leadership positions.
Despite being tapped by Trump for the post in 2017, Powell has repeatedly been the target of the president-elect’s criticisms for not cutting rates fast enough throughout his tenure.
He was later reappointed by President Biden in 2021 — despite objections from progressives who have also criticized the chair.
Trump suggested earlier this year that Powell, a lifelong Republican, was “political” and would cut rates ahead of the 2024 election to help Democrats. While the Fed did cut rates in September by a whopping 50 basis points, Trump handily defeated Vice President Harris this week.
The Fed is a politically independent agency and closely guards its reputation.
But in August, Trump suggested he should “have at least a say” in monetary policy, including interest rates, because he has “made a lot of money.”
Trump later walked back his comments during an interview with Bloomberg.
“I think it’s fine for a president to talk,” he said. “It doesn’t mean that they have to listen.”
Trump also said over the summer that he would let Powell serve out his term, “especially if I thought he was doing the right thing,” but that he would not reappoint him for another term.
