November 08, (THEWILL) – Federal Reserve Chair, Jerome Powell, has stated he would not step down if requested by President-Elect Donald Trump.
Powell’s remarks came during a press conference on Thursday, following the Federal Reserve’s announcement of a 25-basis-point interest rate cut, bringing the rate to 4.50-4.75 percent.
Responding to a reporter who referenced calls from some of Trump’s advisors suggesting Powell should resign, the Fed Chair firmly replied, “No.”
He added that, under the law, a president cannot unilaterally fire or demote the head of the Federal Reserve.
The rate cut aligns with market expectations and follows a more significant 50-basis-point reduction in September, marking the Fed’s first rate cuts in four years.
Powell cited a higher yet stable unemployment rate of 4.1 percent in October and an easing inflation rate over the past two years.
“Total PCE prices rose 2.1 percent during the 12 months ended September, excluding food and energy. Core PCE prices rose 2.7 percent,” Powell said.
He noted that inflation was nearing the Fed’s 2 percent long-term goal, though core inflation remains somewhat elevated.
This latest policy announcement is the first under Trump’s return to power, a factor that has brought renewed scrutiny to Powell’s role.
Trump has frequently criticised Powell’s leadership and expressed frustration with the Fed’s rate policies.
When asked in July if he intended to complete his term, Powell confirmed unequivocally, “Yes.”
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