US Fed Chairman Jerome Powell Says He Does Not Plan To Step Down Under Trump

Jerome Powell, the Chairman of the US Federal Reserve, recently stated that he has no plans to step down from his position if asked when Donald Trump returns to office.

Powell Intends To Stay Until The End of His Term

Powell’s statement came in response to a recent wave of speculations regarding his post. The speculators were discussing whether or not he would leave his position under Trump, following the former president’s victory in the 2024 election. 

After all, many expect Trump to cause additional disruptions to borrowing costs, given his plans to raise tariffs and drive up the prices. Powell addressed this as well during a recent press conference, stating that, president or not, Trump will not have permission under the law to remove him from his position before his term expires.

In other words, Trump can only request Powell’s resignation if he so chooses, but Powell is under no obligation to fulfill that request. Other than that, the Reserve announced that borrowing costs will be cut, lowering the key lending rate to 4.5%-4.75%.

While Trump has been announcing major changes, Powell stressed that things are still in a very early stage, and it is unknown what the policies are, or when they will be implemented. However, he was at least able to confirm that the Fed’s policy decisions will not be affected by the election in the near term.

Is Trump Planning To Replace Powell?

Interestingly enough, Trump was the one who appointed Powell all the way back in 2017. While the Fed Chairman said he has no plans to step down before his term ends, the end itself is fairly close, set for 2026. 

However, the discussions regarding whether Powell would stay in office or not emerged due to Trump’s criticisms of banking officials and reported consultations with advisors regarding Powell’s removal from office. It was even speculated that the former and future president might deny him the ability to choose his successor.

Right now, the Fed doesn’t have the best reputation with the American public, given the unstable economy, high inflation, and constant rate hikes in 2022 This significantly increased the borrowing cost for credit cards, mortgages, loans, and alike, causing the public to grow more and more displeased with the financial authorities.

However, the measures were necessary, according to the Fed, to prevent greater economic disruptions. Now, he said that the Fed has started the rate cuts, and it will continue to cut them in order to stabilize the economy and the job market. Meanwhile, Trump’s second term is a major unknown, and no one can predict how it will affect the prices.