In a new interview with NBC, President-elect Donald J. Trump stated that he has no plans to fire Federal Reserve Chairman Jerome H. Powell. This announcement comes as a relief to many who were uncertain about the president’s intentions regarding Powell’s position.
Trump made this statement after previously expressing his desire for Powell to lower interest rates more quickly in 2017, when he appointed Powell as Fed chair. However, Trump soon soured on his pick and considered firing or demoting Powell due to their differing views on monetary policy.
Powell has consistently stated that the president does not have the legal authority to remove him from office, citing a lack of clear precedent in court cases. Additionally, Powell has said he would not leave his position if asked by Trump.
The Federal Reserve is designed to maintain independence from the White House, allowing officials to make tough decisions about interest rates and other economic policies that benefit the long-term health of the economy.
Source: https://www.nytimes.com/2024/12/08/us/politics/trump-federal-reserve-jerome-powell.html