Trump Won't Replace Federal Reserve Chair Jerome Powell, Affirms Stability Amid Economic Scrutiny

The President-elect Donald Trump, has indicated that he has no intentions of ousting Federal Reserve Chair Jerome Powell, whose term is scheduled to conclude in May 2026. During an exclusive interview with “Meet the Press” moderator Kristen Welker, the President-elect categorically stated, “I don’t,” when questioned about whether he plans to terminate the central bank chief’s term.

Donald Trump says he won't try to remove Fed chief

When asked if he would attempt to replace Jerome Powell, the President-elect responded in the negative, expressing, “No, I don’t think so. I don’t see it.” He further elaborated, “But, I don’t — I think if I told him to, he would. But if I asked him to, he probably wouldn’t. But if I told him to, he would.” These statements come after years of contention between Trump and Powell, with previous attempts by Trump to remove the Fed chair during his first term in office.

History of Tension

Trump appointed Powell, a Republican and former private equity executive, as chairman of the Board of Governors of the Federal Reserve System in February 2018. However, disputes over interest rates arose shortly after, leading to tensions between the two. During Trump’s first term, the relationship between Trump and Powell was marked by frequent clashes, with Trump threatening to dismiss Powell on multiple occasions. Despite this, Powell has firmly stated that he has no intention of resigning early, asserting that such an action is not permitted under the law.

Skepticism Over Interest Rate Decisions

Furthermore, Trump has expressed skepticism regarding Powell’s management of monetary policy, implying that he is not adequately responding to economic challenges and suggesting that the president should have a say in interest rate decisions. The impact of this stance on the independence of the Federal Reserve and its decision-making process has raised concerns among economic experts and policymakers.

Future Relationship

As Trump prepares to transition back to the presidency, the dynamic between him and Powell is expected to be closely scrutinized. Trump’s previous criticisms of Powell’s performance have led to speculation about potential challenges to the Fed’s autonomy during Trump’s upcoming administration. Economic analysts are keenly observing how this relationship will evolve and its implications for monetary policy and economic stability.