U.S. President-Elect Slashes Ties with Federal Reserve Chair Powell
President-elect Donald Trump has announced that he will not attempt to replace Federal Reserve Chair Jerome Powell, whose term runs through May 2026. In an exclusive interview with “Meet the Press” moderator Kristen Welker, Trump stated, “I don’t,” when asked if he plans to cut short Powell’s term. Trump also expressed his respect for Powell, saying, “I think if I told him to, he would” leave his post early.
This decision comes as a surprise, as Trump and Powell have clashed in the past over interest rates and other economic policies. Trump had previously threatened to fire Powell on several occasions, and the two have publicly disagreed about the direction of the economy. However, Trump’s recent decision to keep Powell in his position suggests a willingness to put aside their differences and work together.
Powell, who was appointed by Trump in 2018 and reappointed by President Joe Biden in 2022, has consistently ruled out the possibility of leaving his post early. He has also maintained that he does not believe Trump can fire him, stating, “Not permitted under the law.”
The relationship between Trump and Powell will be closely watched as Trump returns to office, particularly as it relates to interest rate decisions. Trump has argued that the president should have a greater say in these decisions, which are currently made by the Federal Reserve. However, Powell and the Fed have maintained that they must remain independent in order to make sound economic decisions.
Despite their differences, Trump’s decision to keep Powell in his role suggests a willingness to put aside their disagreements and work together to address the country’s economic challenges. The relationship between the two leaders will be closely watched in the coming months as they navigate the complexities of the economy and the presidential transition.
