Fed Chair Powell says he wouldn’t step aside if Trump asked him to
“No.” That was Fed Chair Jerome Powell’s response when asked if he would willingly leave the US central bank if President-elect Donald Trump asked him to step down. He repeated that answer when asked if he thought Trump had the legal authority to remove him from office.
Powell later added that Trump lacks the legal ability to demote him, either.
Q: Can the president demote you or other leadership personnel at the Fed?
— Nick Timiraos (@NickTimiraos) November 7, 2024
Powell: Not permitted under the law.
Q: ??
Powell: [Slower] Not ... permitted ... under the law
On the campaign trail, Trump suggested that the president should “at least have a say” when it comes to interest-rate decisions, and suggested he had better instincts on this file than most monetary policymakers, including the Fed Chair.
During his first term as president, Trump routinely blasted Powell on social media and in the press for raising rates and reducing the size of the Fed’s balance sheet.
I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make yet another mistake. Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers. Good luck!
— Donald J. Trump (@realDonaldTrump) December 18, 2018
A senior adviser to the president-elect told CNN that Trump plans to “allow” Powell to serve out his term as Fed Chair, through May 2026.
It’s ambiguous as to whether Trump has the ability to remove Powell from his position; any attempt would likely result in a legal battle, based on the Fed Chair’s comments today.
