Will He Resign If Donald Trump Asks? Fed Boss Jerome Powell Responds

Will Powell Resign: Federal Reserve Chair Jerome Powell stated on Thursday that he would not step down early if incoming President Donald Trump attempted to remove him, emphasising that his position is legally protected. 

Powell’s comments followed Federal Reserve's anticipated decision to cut its target interest rate by a quarter percentage point, justing it to a range of 4.5 to 4.75 per cent as bank moves towards policy normalisation amid easing inflation.

Not permitted under law to remove me: Jerome Powell

During a press conference after Federal Open Market Committee’s latest meeting, Powell was asked if he would consider leaving his role if requested by Trump, who h previously criticised him during his first term in office. 

Powell responded firmly, saying "no" and underscoring that neir he nor or Fed governors could be dismissed before ir terms expire under current law.

Elections to have no impact on monetary policy: Powell

Ahe of upcoming US elections on Tuesday, expectations h grown that Federal Reserve would maintain a path of rate cuts. However, Powell dismissed speculation that election results would impact Fed's policy trajectory, affirming that central bank’s decision-making remains independent of political developments. 

“In near term, election will not affect our policy decisions,” Powell said. “We don’t guess, speculate, or factor in assumptions about what broer government might do.”

Governor Kevin Warsh can be Trump’s first choice: Reports

According to media reports cited by Reuters, Trump may consider former Fed Governor Kevin Warsh, a frequent critic of bank, or former ministration chief economist Kevin Hassett as potential successors when Powell’s term concludes in 2026. 

leership of Federal Reserve is legally structured to insulate members from political interference, ensuring y serve full terms unless removed for cause.

Powell was initially appointed Fed Chair by Trump in early 2018, succeeding Janet Yellen, who went on to serve as President Joe Biden's Treasury Secretary. Biden later reappointed Powell, but tensions marked Powell's tenure with Trump, who criticised central bank’s policy decisions, diverging from trition of presidents refraining from direct critiques of independent Fed.

Analysts suggest that any attempt by Trump to remove Powell or or Fed officials could destabilise financial markets and reignite inflation concerns. Trump's policy inclinations, including high tre tariffs and stringent immigration enforcement, could potentially drive up inflation, reversing progress me by Fed in cooling price pressures.

(With Reuters inputs)