Fed Reserve Chairman Says ‘Will Not Quit If Trump Asked for Resignation’

Federal Reserve Chairman Jerome Powell said he would not resign as Fed chairman even if President-elect Donald Trump asked him to.

He added “no” when asked by a reporter whether he would resign if Trump asked him to.

Later, another reporter asked Powell whether the president had the authority to fire or demote him. The Fed chief responded that such an action is “not permitted by law.”

He noted that policies set by the US administration or passed by Congress can have economic effects that gradually affect the Fed’s goals. He stressed that these expectations will be taken into account in the board’s decisions.

The Federal Reserve on Thursday cut interest rates for the second time in 2024, by 25 basis points to a range of 4.5% to 4.75%, in line with expectations. The Fed’s approval reflects a less aggressive move than before but continues its efforts to adjust monetary policy. It also comes after Donald Trump won the presidential election.

Powell, during a press conference after the Fed meeting, indicated that signs of a slowdown were emerging with the unemployment rate rising, adding that recent economic data exceeded the Board’s expectations, which calls for a careful assessment of developments.

Powell stressed that the Fed will continue to use all available tools to combat inflation, which has witnessed a significant decline over the past two years.

He also pointed out that lowering interest rates will play a role in supporting both the economy and the labor market.

The bank’s Monetary Policy Committee said in a statement issued at the end of a meeting that began Wednesday morning that “labor market conditions are improving,” and while “inflation has made progress in returning to the 2% target, it remains elevated.”