08 November 2024

Federal Reserve Chief Jay Powell Says He Will Not Resign if Trump Asks

To be above reproach and give no foothold or pretext to Trump's predictable attacks, Powell remained as technical as possible, refusing to utter the president-elect's name. Yet Trump's policies, which have promised to cut taxes and introduce a tariff on imports of at least 10%, may increase the country's budget deficit and revive inflation.
The Fed chief's response was that "in the near term the election will have no effects on our [monetary] policy decisions. (...)

With Trump re-elected to the White House, Fed chief Powell refuses to 'speculate' on his future

During a press conference on lower interest rates on Thursday, the chairman of the Federal Reserve confirmed that he would not step down if the president-elect asked him to do so.

Le Monde

4 hours ago

With Trump re-elected to the White House, Fed chief Powell refuses to 'speculate' but defends his independence

At the end of a dull half-hour conference in which Federal Reserve Chairman Jerome Powell was commenting, on Thursday, November 7, on the quarter-point cut in the monetary institution's key interest rates – decided as expected by the Fed – the question was finally asked:

Will you resign if President Donald Trump asks you to?
The answer was "No."
Does he have the right to?
"No," continued Powell curtly, pointing out that it was "not permitted under the law."

Thus, the Fed chief camped out his independence, two days after Trump's triumphant election. During his first term, the Republican president had explored the possibility of firing Powell – a moderate Republican whom he had nonetheless appointed, in 2018 – and he said again recently that he would like to have a say in US monetary policy.

Law experts believe that Trump cannot dismiss the Fed chief without serious cause. His term runs until 2026 while he is appointed to the institution's Board of Governors until 2028. During the term that Trump will start on January 20, 2025, only one seat on the Board expires. While he may appoint a new president, the Republican will not have the opportunity to reshape the board, part of which is made up of professionals from regional central banks.

This Thursday, asked about the risk of interference from the president, Powell, decidedly not a man of many words, replied, "I'm not going to get into any of the political things today."