Chairman of the Federal Reserve, Jerome Powell, has made it clear that he will not resign from his position if requested by Donald Trump upon his return to office.
Following Trump’s victory over Democratic candidate Kamala Harris earlier this week, speculation has arisen regarding Powell’s future. Trump is anticipated to further disrupt borrowing costs by increasing tariffs, potentially leading to higher prices.
During a recent press conference, Powell asserted that Trump “is not permitted under law” to remove him from his role. The Federal Reserve announced a reduction in borrowing costs, lowering the key lending rate to between 4.5% and 4.75%.
Powell remarked, “It’s such an early stage – we don’t know what the policies are, we don’t know when they will be implemented. In the near term, the election will have no effects on our policy decisions.”
Appointed by Trump in 2017, Powell’s term is set to conclude in 2026. However, Trump has criticized banking officials and has purportedly consulted with advisors about the possibility of replacing Powell, which could impact his authority in selecting a successor.
The Federal Reserve has faced public backlash due to a fluctuating economy, rising inflation, and the rate hikes in 2022 that resulted in increased borrowing costs for credit cards, loans, mortgages, and more.
Powell emphasized that they will continue to cut rates to stabilize the economy and the job market, leaving uncertainty about the impact a second Trump term may have on prices.