Federal Reserve Chair Jerome Powell reveals whether he will resign if Donald Trump asks

Federal Reserve Chair Jerome Powell said that his staff discovered that the President lacked legal power to demote him or any other Fed governors at will.

Published on: Nov 8, 2024, 22:56:44 IST

By Shweta Kukreti

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“No”, replied Federal Reserve Chairman Jerome Powell when asked if President-elect Donald Trump would ask him to step down.

Jerome Powell sees himself as a public servant, but he seems to be preparing for a possible confrontation with Trump, who recently stated that he would not have direct control over Fed decisions, but he should at least be allowed to provide advice. (Getty Images via AFP)

During his first term, Trump selected Powell to be the Fed's chairman in 2017.

Powell says he has no legal boundation to leave

Powell said that his staff discovered that the President lacked legal power to demote him or any other Fed governors at will and that he was not legally bound to depart if asked to do so.

Powell is scheduled to leave office in May 2026.

After the release of Federal Open Market Committee's most recent interest rate policy statement, Powell made the remarks during the customary press conference. On Thursday, the committee declared a quarter-point cut.

Powell's remarks are probably interpreted as an attempt to preserve the Fed's long-standing protection from external political influence, albeit there has occasionally been discussion about whether this exemption actually exists in reality.

Also Read: Federal Reserve cuts its key interest rate by a quarter-point after Trump's election win

The Federal Reserve head sees himself as a public servant, but he seems to be preparing for a possible confrontation with Trump, who recently stated that he would not have direct control over Fed decisions, but he should at least be allowed to provide advice.

“I don’t think I should be allowed to order it, but I think I have the right to put in comments as to whether or not the interest rates should go up or down,” Trump stated in a Bloomberg News interview at the Chicago Economic Club, as per Reuters.

Here's what Trump has said about Powell

Citing people familiar with the situation, CNN reported on Thursday that Trump is still likely to let Powell complete his term.

Speaking to CNBC on Wednesday, prominent Trump fundraiser Scott Bessent stated that Trump intended to choose Powell's successor “very early” in his future administration, citing former Fed governor Kevin Warsh as a preferred candidate.

ABOUT THE AUTHOR
Shweta Kukreti
Shweta Kukreti has over 8 years of experience in covering Indian and world politics. She joined the Hindustan Times in 2024 and is primarily assigned to the US desk. She currently works as Deputy Chief Content Producer and reports on a wide range of topics, including US politics, immigration issues (especially H-1B visa) and major global events. Shweta strongly emphasizes team operations, which encompasses monitoring news, delegating tasks, editing, developing comprehensive coverage strategies, and crafting engaging, and data-informed narratives. She received the Digi Star Award at the Hindustan Times within a year of joining for her broad coverage of US politics. In 2025, she earned both a promotion and a redesignation, a significant achievement recognising her contributions and the strong value she brings to the team. She has previously worked with the Indian Express, HTDS, ANI and Republic World. Seniors in all the media organisations recognised her work. Regarding education, she earned a BA (Hons.) in Political Science and a master's degree from Delhi University, and she pursued a PG Diploma in English Journalism from the Indian Institution of Mass Communication (IIMC). She also holds a diploma in Women's Empowerment and Development from IGNOU University and a French certification course from Alliance Française de Delhi. If not working, you can find her exploring the hills and engaging in adventurous activities in Rishikesh and Himachal Pradesh. She loves to play badminton, volleyball, and chess, and spend time with her friends and family. She also enjoys spiritual activities.Read More

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