Fed chair says Trump can’t remove him. Could Trump still influence interest rates? [Video]

Federal Reserve Chair Jerome Powell struck a defiant tone this week when posed with the question of whether he would resign from his position if asked by President-elect Donald Trump.

“No,” Powell said, pausing to let the one-word answer register with the reporters assembled at a press conference in Washington, D.C., blocks away from the White House. When asked whether Trump could fire or demote him, Powell retorted: “Not permitted under the law.”

Prominent Trump allies responded within hours. “The Executive Branch should be under the direction of the president,” Republican Sen. Mike Lee of Utah posted on X atop a screenshot of Powell’s comments. Lee added: “Yet another reason why we should #EndTheFed.”

Billionaire entrepreneur Elon Musk, a top Trump donor, reposted the message from Lee with an emoji appended, indicating Musk’s full support.

The high-stakes standoff has elicited questions about what Trump could do to overcome the Fed’s longstanding independence, whether such maneuvers could …