Trump Retreats From Planned Ouster Of Fed Chief Jerome Powell

President-elect Donald Trump announced that he has no plans to remove Federal Reserve Chairman Jerome Powell, marking a shift in tone toward the Fed chief.

Powell was first appointed by Trump in November 2017 and reappointed by President Joe Biden for a second term. I Photo: United States Federal Reserve Flickr

Speaking on NBC’s Meet the Press with Kristen Welker, Trump was asked if he intended to replace Powell.

“No, I don’t think so. I don’t see it,” Trump replied. “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 pressed further on whether he planned to ask Powell to resign, Trump responded, “No, I don’t,” Auzinea Bacon reported for CNN.

This is the first time since the election that Trump has publicly backed Powell. In July, Trump stated he would not fire Powell if elected.

A senior adviser reaffirmed in November that Trump would likely let Powell complete his term. Trump previously threatened Powell’s removal multiple times, particularly in 2018 when the Fed raised interest rates, and called him “the enemy” in 2019.

Despite criticism, Trump also praised Powell for slashing interest rates to zero in March 2020 to prevent an economic collapse during the pandemic.

Powell was first appointed by Trump in November 2017 and reappointed by President Joe Biden for a second term. When asked after the election if he would resign at Trump’s request, Powell replied that he would not, citing legal protections that prevent a Fed chair from being dismissed without cause.

Any attempt to remove Powell would likely require a lengthy legal process, with the Supreme Court potentially deciding what constitutes “cause” for dismissal under U.S. law.