Federal Reserve Chair Jerome Powell had a clear, direct response when asked during a press conference Thursday if he would step down if asked to do so by President-elect Trump.
“No,” said Powell, whose term as chair ends in 2026
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When asked to elaborate and if he would be legally required to leave, he again 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.
Trump appointed Powell during his first term in 2017 but repeatedly and publicly criticized the Fed and its chair for not cutting rates fast enough throughout his tenure.
Powell also said in 2019 that he would not resign if asked by Trump. President Biden reappointed Powell in 2021 — despite objections from progressives who have criticized the chair — saying he has burdened the average American by keeping rates too high for too long.
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.”
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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.”
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“A president certainly can be talking about interest rates, because I think I have very good instincts,” he said. “That doesn’t mean I’m calling the shot, but it does mean that I should have a right to be able to talk about it like anybody else.”
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.