- Fed’s Powell says Trump can’t fire him
- Powell also said he would not step down if asked
- Powell became a target of Trump’s during his term
Fed’s Powell says Trump can’t fire him
Jerome Powell, the head of the US Federal Reserve, dismissed speculation that former President Donald Trump could remove him from his position when he returns to office in January 2025. Speaking at a press conference after the Fed lowered its key interest rate to 4.5%-4.75%, Powell said he would not step down if asked, adding that the law protects his role from presidential interference.
Powell, appointed by Trump in 2017, became a target of the former president’s criticism during his term. Trump had publicly called Fed officials “boneheads” and reportedly explored ways to remove Powell.
The Federal Reserve recently began cutting interest rates after aggressively raising them to fight inflation. Rates climbed from near zero in 2022 to over 5% by mid-2023, leading to higher borrowing costs for loans and mortgages. Inflation has since eased, dropping from 9% in mid-2022 to 2.4% in September 2023, prompting the Fed to shift its approach.
Powell said it remains too early to predict how new economic policies might shape the Fed’s decisions. While the bank is expected to continue lowering rates, Powell declined to offer specifics, emphasising the Fed’s dual focus on price stability and a healthy job market.