Washington (AFP) – US Federal Reserve Chair Jerome Powell said Thursday that he would not resign if asked to leave early by President-elect Donald Trump. Speaking at a press conference after unveiling a quarter point interest rate cut, Powell — whose term as Fed chair ends in 2026 — added that firing any of the Fed’s seven governors was also “not permitted under the law.”
His comments underscore the delicate balancing act policymakers may have to play in the next Trump administration, given the US president-elect’s recent criticism of the Fed. On the campaign trail, Trump repeatedly accused Powell — whom he first appointed to run the US central bank — of working to favor the Democrats and has suggested he would look to replace him once his term as Fed Chair ends.
The president-elect has also said he would like “at least” a say over setting Fed interest rates, something not currently allowed under the bank’s dual mandate from Congress to act independently to tackle both inflation and unemployment. Fed governors are nominated by the president and appointed by the Senate to serve a 14-year term. They can also be appointed to serve out the remainder of a 14-year term if a Fed governor retires, and must then be reconfirmed.
If he wanted to, Powell could stay on as a governor after he steps down as Fed chair and serve out the remainder of his term, which expires in early 2028.
© 2024 AFP
