Federal Reserve Chair Jerome Powell has no plans to leave the central bank prematurely under Donald Trump.
The Federal Open Market Committee announced a 25-basis-point interest-rate cut on Thursday, two days after Trump won the presidential election.
While economists expect Trump’s proposed tariffs to boost inflation, Powell refused to comment on things directly related to the election or politics during his Thursday press conference. But when a reporter asked Powell if he’d resign should Trump ask him to, the head of the central bank responded, “No.”
When a different reporter later asked if the president has the power to fire or demote the head of the Fed, Powell responded, “Not permitted under the law.”
Trump appointed Powell in 2018, and President Joe Biden reappointed him in 2022.
Trump has indicated he’d like to see changes in how the Fed functions. The Wall Street Journal reported in April that some members of Trump’s team were crafting a plan that would give …