Jerome Powell can relax – President-elect Donald Trump stated he would not try to replace him before his terms as Federal Reserve chairman ends in May 2026.
In an interview broadcast on NBC’s “Meet the Press,” moderator Kristen Welker pressed Trump on retaining Powell, who stated he would not follow any request by Trump to resign ahead of his term’s expiration. When asked if he would try to replace Powell, Trump said, “No, I don’t think so. I don’t see it. 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.”
When Welker followed up to ask if he had plans to remove Powell, Trump replied, “No, I don’t.” Trump said.
Trump appointed Powell, a Republican and a former private equity executive, to chair the central bank in 2018, but became disenchanted with him and spoke openly of removing him. Powell outlasted the first Trump administration and was reappointed by President Biden in 2022.
Powell has insisted he cannot be removed from office by Trump, declaring “Not permitted under the law” during a news conference last month.
I’m surprised. Will be interesting to watch.