In a short answer to reporters’ questions about the president-elect, Jerome Powell, the head of the Federal Reserve, said Thursday that he would not quit if asked to by Donald Trump.
Powell avoided questions about how the election might affect policy at a news conference held after the Federal Reserve decided to lower its benchmark interest rate by a quarter-point. But when asked if he would quit if Trump asked him to, he very simply said, “No.”
In 2017, Trump chose Powell to be Fed chair instead of Janet Yellen for a second term as head of the central bank. However, he later changed his mind about the pick. As expected, the tense relationship would be a big part of today’s news conference now that Trump has been elected to a second term.
Powell said that the law did not allow the president to fire or demote him or other Fed governors when asked if that was possible. When a reporter asked him to repeat his five-word answer, he did so slowly and strongly.
The courts have said that a president needs “cause” to fire a member of the Fed’s board of governors, which means that the person was not doing their job well or efficiently.
Reports from MarketWatch’s Greg Robb say that people who keep an eye on the Fed don’t think Trump will try to fire Powell before the middle of 2026, when his term ends.
