Federal Reserve Board Chair Jerome H. (“Jay”) Powell was succinct and clear Thursday about whether he would resign from his job if asked by the new president-elect – a man who during his first term roundly criticized Powell.
“No” was Powell’s curt reply.
Powell was speaking to reporters in a news conference following the announcement that the Fed’s interest-rate setting panel, the Federal Open Market Committee (FOMC), had cut interest rates lay 25 bp.
The question was posed to him by Politico economics reporter Victoria Guida, who followed up by asking if Powell’s answer reflected the law or political considerations. Powell said nothing, ignored the question, and moved on with questions.
Later, Washington Post Reporter Andrew Ackerman, following up on Guida’s question, asked Powell if the Federal Reserve believes the new president has the power to fire or demote him or other Fed Board officials from leadership positions.
“Not permitted under the law,” Powell replied, repeating it emphatically.
And, still later, Powell was mum on a question about any Fed concern over President-elect Donald Trump’s (R) influence over the agency’s independence. “I’m not going to get into political things here today,” Powell replied.
Powell was confirmed to a second, four-year term as chairman in 2022, after being nominated by President Joe Biden (D). His current term as chairman runs to May 2026; his term as a Fed Board member runs until 2028.
During his first term, Trump was often critical of Powell’s leadership. In 2019, for example, Trump criticized the Fed Board leader (who he nominated in 2017, and began his first term as chair in 2018) for not cutting interest rates more or even considering “negative” interest rates. Powell repeatedly cited the Fed’s independence from political pressure during that time.