Trump Enemy Fed Reserve Chief Says He Won't Resign Even if Prez-Elect Asks – The Daily Beast

When asked Thursday whether he would resign as chairman of the Federal Reserve if Donald Trump asked him to, Jerome Powell had a succinct answer: “No.”

Asked by a Politically When asked to elaborate on his reasoning, a very serious-looking Powell repeated, “No.”

Powell's defiance – just two days after Trump's stunning election victory – is sure to anger the president-elect, who does not have the power to fire or demote Powell even when he is back in the Oval Office in January.

“Not allowed under the law,” Powell declared bluntly, reminding reporters that Trump does not have absolute authority over him and his decisions.

Powell spoke at a news conference he called to announce that the Fed had cut interest rates by a quarter point, a move he said was a response to the steady decline in inflation in recent months.

Powell, 71, has led the Federal Reserve since 2018, a year after Trump appointed him to the position. Joe Biden reappointed Powell, a former Republican private equity executive, to another four-year term at the helm of the central bank in 2022.

Powell and Trump had a contentious relationship in the second half of Trump's first term, with the then-president publicly complaining that Powell did not ease monetary policy quickly enough.

Trump even tried to remove Powell from his role in 2020 — using the COVID-19 chaos as a cover — but was unsuccessful. They most recently clashed in September, when Trump accused Powell of possibly “playing politics” with the timing of Powell's announcement of a historic 0.5 percent interest rate cut.

Trump, 78, recently admitted that he couldn't boss Powell around. However, at an event last month, he said he should be allowed to exercise some influence over the chairman's decision-making.

“I don't think I should be allowed to order it, but I think I have the right to make comments about whether interest rates should go up or down,” Trump said on October 17 at the Economic Club of Chicago. 15.

At the same event, Trump claimed that Powell had one of the easiest jobs in the federal government.

“You come into the office once a month and say, 'Let's flip a coin,' and everyone talks about you like you're a god,” Trump said of Powell's position.

Throughout his presidential campaign, Trump repeatedly drew attention to inflation, with polls suggesting it was a key concern for voters, particularly the cost of gas and groceries. But even before the campaign's home stretch, the annual inflation rate had fallen to just 2.4 percent by September – significantly less than the peak of 9.1 percent in the summer of 2022.

Powell was asked Thursday about Trump's policy goals, including the new president's obsession with imposing sweeping tariffs and cutting taxes. Powell did not address the specific policies, instead insisting that the Fed would not implement hypothetical policies until the man who initiated them took office. He added that the election would have “no impact” on interest rate decisions.

“It’s such an early stage,” Powell said. “We don’t know the guidelines, and once we do, we don’t know when they will be implemented.”

The Daily Beast Podcast Episodes are released every Thursday. Like and download Spotify, Apple Podcasts, YouTubeor your favorite podcast app. And Click here for email updates as each new episode is released.