Fed Chair Jerome Powell Refuses to Step Down
Federal Reserve Chair Jerome Powell has made it clear that he intends to remain in his position through the duration of his term, regardless of any pressure from President-elect Donald Trump to resign. Following the Federal Reserve’s decision to cut interest rates by 25 basis points, Powell was asked at a press conference if he would resign should Trump demand it. Powell’s response was direct: “No.” When pressed further on whether Trump could legally force him out, Powell firmly stated, “Not permitted under the law.”
Trump’s Criticism of Powell and the Federal Reserve
President-elect Trump has been outspoken in his criticism of Jerome Powell and the Federal Reserve, particularly regarding the central bank’s policy decisions. In the past, Trump has expressed dissatisfaction with Powell’s handling of interest rates, at times calling the Fed chair a “bonehead.” Trump also suggested that Powell might be acting politically by lowering interest rates in an effort to benefit the Democrats. In an interview earlier this year, Trump warned of potential inflationary risks due to global tensions and suggested Powell was lowering rates to influence the political landscape, a claim Powell denied.
Trump has previously stated that he would not reappoint Powell if given the chance, citing his dissatisfaction with the Fed’s handling of inflation. However, in June 2024, Trump appeared to soften his stance, saying he would allow Powell to complete his term if re-elected, provided Powell was “doing the right thing.”
Powell’s Future at the Fed
Jerome Powell’s term as the chair of the Federal Reserve is set to run until May 2026, with his position on the Board of Governors continuing until 2028. Despite Trump’s critical remarks, Powell has shown no signs of stepping down. His tenure at the Fed has been marked by a focus on managing inflation and steering the U.S. economy through challenging times. Powell was initially nominated by President Trump in 2017 and confirmed in 2018. President Biden later renominated Powell to continue serving in the role.
This latest development comes as the Federal Reserve continues to navigate the complex task of balancing economic growth with inflation control. With the recent rate cut, Powell’s leadership will remain in the spotlight as he faces continued political scrutiny.
