Trump says he has no plans to remove Powell as Fed chair

Investing.com — President-elect Donald Trump has stated he has no intention of replacing Federal Reserve Chair Jerome Powell, whose term extends until May 2026. In an interview with NBCâ€s Kristen Welker on “Meet the Press,â€� Trump responded with “I donâ€tâ€� when asked if he planned to end Powellâ€s tenure prematurely.

Welker pressed Trump on Powellâ€s recent comments that he would not leave his position, even if asked. Trump replied, “No, I donâ€t think so. I donâ€t see it,â€� but added, “I think if I told him to, he would. But if I asked him to, he probably wouldnâ€t. But if I told him to, he would.â€�

When asked again if he had immediate plans to replace Powell, Trump reaffirmed, “No, I donâ€t.â€�

Powell, a Republican and former private equity executive, was first appointed as Fed chair by Trump in February 2018. The relationship between the two was marked by frequent disputes over interest rate policies during Trumpâ€s first term, with Trump even threatening Powellâ€s removal on multiple occasions. In 2022, President Joe Biden reappointed Powell to a second term.

Powell has firmly dismissed the notion of leaving his role early, explaining that the president cannot legally fire him. “Not permitted under the law,� Powell remarked during a postelection press conference.

The relationship between Trump and Powell is expected to draw significant attention as Trump assumes office. Trump has recently advocated for greater presidential influence over the Fedâ€s interest rate decisions, though he clarified to Bloomberg News in October that he doesnâ€t believe he should “order itâ€� but feels he has “the right to put in commentsâ€� on rate changes.

Trump has previously criticized Powellâ€s position as Fed chair, jokingly describing it as “the greatest job in governmentâ€� and quipping, “you show up to the office once a month, and you say, ‘Letâ€s see, flip a coin.â€â€�