Federal Reserve Chair Jerome Powell reveals whether he will resign if Trump asks

“No”, replied Federal Reserve Chairman Jerome Powell when asked if President-elect Donald Trump would ask him to step down.
During his first term, Trump selected Powell to be the Fed’s chairman in 2017.
Powell said that his staff discovered that the President lacked legal power to demote him or any other Fed governors at will and that he was not legally bound to depart if asked to do so.
Powell is scheduled to leave office in May 2026.
After the release of Federal Open Market Committee’s most recent interest rate policy statement, Powell made the remarks during the customary press conference. On Thursday, the committee declared a quarter-point cut.
Powell’s remarks are probably interpreted as an attempt to preserve the Fed’s long-standing protection from external political influence, albeit there has occasionally been discussion about whether this exemption actually exists in reality.
Also Read: Federal Reserve cuts its key interest rate by a quarter-point after Trump’s election win
The Federal Reserve head sees himself as a public servant, but he seems to be preparing for a possible confrontation with Trump, who recently stated that he would not have direct control over Fed decisions, but he should at least be allowed to provide advice.
“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 or not the interest rates should go up or down,” Trump stated in a Bloomberg News interview at the Chicago Economic Club, as per Reuters.
Citing people familiar with the situation, CNN reported on Thursday that Trump is still likely to let Powell complete his term.
Speaking to CNBC on Wednesday, prominent Trump fundraiser Scott Bessent stated that Trump intended to choose Powell’s successor “very early” in his future administration, citing former Fed governor Kevin Warsh as a preferred candidate.