In a recent interview, President-elect Trump indicated that he does not intend to dismiss Jerome Powell as chair of the Federal Reserve when he takes office next year. During his conversation with Kristen Welker on “Meet the Press,” Trump stated, “No, I don’t think so. I don’t see it.”
He elaborated on his stance by saying, “I think if I told him to, he would. But if I asked him to, he probably wouldn’t. But if I told him to, he would.” When asked directly if he planned to fire Powell, Trump replied, “No, I don’t.”
Jerome Powell stands firm, asserting he won’t resign even if Trump requests it, citing legal protections
Powell, whose current term runs until 2026, previously informed reporters that he would not resign even if Trump requested it. He emphasized that “it is not permitted under the law” for the president to remove or demote him or any of the other Fed governors with leadership roles.
Appointed by Trump during his first term in 2017, Powell faced criticism from the former president throughout his tenure for not reducing interest rates swiftly enough.
Earlier this year, Trump suggested that Powell, a lifelong Republican, had become “political” and might lower rates in advance of the 2024 election to benefit Democrats. While the Fed did make a significant rate cut of 50 basis points in September, Trump decisively defeated Vice President Harris in the November election.
The Federal Reserve operates as a politically independent institution and places great importance on its reputation. Trump has previously argued that the president should have a say in the Fed’s approach to rate cuts, even if the central bank chooses not to heed such input.
