US central bank director claims Trump can’t expel him

(MENAFN) Jerome Powell, Chairman of the U.S. Federal Reserve, declared on Thursday that he would not step down, even if President-elect Donald Trump attempts to remove him from office. Powell’s statement came after a Federal Reserve meeting where officials decided to lower the benchmark interest rate to between 4.5% and 4.75%.

When asked if he would resign at Trump’s request, Powell firmly replied, “No,” explaining that the president does not have the legal authority to fire or demote the Fed chair or any other governors before their terms end. Powell’s position as Fed chair, appointed by Trump in 2017, has been a point of contention, as the president has frequently criticized the central bank for not lowering interest rates quickly enough. Despite these tensions, Powell has consistently maintained that he will not resign under presidential pressure.

In 2019, Powell reaffirmed his stance, saying he would not step down even if asked by the president. Reappointed by President Joe Biden in 2021, Powell’s term runs until 2026. While Trump has suggested that the president should have more influence over Fed decisions, Powell emphasized that interest rate policies will continue to be based on economic data rather than political influence.

Meanwhile, Trump’s former Treasury Secretary, Steve Mnuchin, has indicated that Trump’s economic agenda will likely focus on tax cuts and tariffs, especially targeting China.

MENAFN10112024000045015687ID1108869671