Jerome Powell, Chair of the Federal Reserve, firmly stated on Thursday that he would not resign if President-elect Donald Trump were to request it.
This declaration came during a press conference following the Federal Open Market Committee (FOMC) meeting, where they decided to lower the benchmark interest rate by 0.25 percentage points, setting it within the range of 4.50% to 4.75%. When asked directly about stepping down at Trump’s request, Powell’s response was a resolute “No.”
Powell clarified that the President lacks the legal authority to dismiss the Federal Reserve Chair. His term will conclude on May 15, 2026.
He assured that the election outcome would not sway the Fed’s policy decisions in the short term.
Trump’s statements during the campaign have raised concerns about potential interference in the Federal Reserve’s interest rate decisions, as he claimed that the president can influence the Fed’s policy.
Powell addressed these concerns in response, noting that many factors affect the economy and that forecasting beyond the short term is challenging, a point any economist would agree with. He added that it’s impossible to predict the timing or specifics of future policy shifts or their impact on the economy at this stage.
Powell emphasized that the Fed refrains from speculation or predictions regarding how such policies might affect their maximum employment and price stability objectives.
Nevertheless, he acknowledged that over time, policies from any administration or Congress could impact the economy, which could be important for achieving the Fed’s dual mandate.
