Powell Rejects Speculation Amid Trump Return to Power

Jerome Powell firmly rejects rumors that his position might be at risk as Donald Trump prepares to return to power. Speaking at a press conference on Thursday, Powell stated that he would not step down if asked by the incoming president, emphasizing that it was “not permitted under law” for the White House to remove him from office before his term ends in 2026.

The comments came after the Federal Reserve announced a cut to its key lending rate, reducing it to a range of 4.5%-4.75%. Despite predictions of further rate reductions, Powell acknowledged the uncertainty surrounding Trump’s proposed economic policies, including tax cuts, tariffs, and immigration changes, which could drive up inflation and government borrowing.

Powell Rejects Speculation About His Job Amid Trump Return to Power

Trump has vowed to impose tariffs on imports, a move that economists warn could increase consumer prices. Additionally, his tax cuts could fuel inflation by encouraging more spending, while mass deportations could shrink the workforce, putting upward pressure on wages. These factors have led to rising interest rates on US debt, signaling concerns about inflation and fiscal policy.

Trump appointed Powell as Fed Chair in 2017, and since then, the former president has frequently criticized him and called for his removal. Despite this, Powell maintains that the Fed’s decisions remain independent and that the election results would not immediately affect monetary policy.

As the Fed cuts rates in response to stabilizing inflation, Powell cautioned against making firm predictions about future moves. “There’s a fair amount of uncertainty,” he said. However, with inflation now at 2.4%, down from over 9% in 2022, Powell emphasized the central bank’s dual focus on price stability and a healthy job market despite recent signs of weaker employment growth in October.

As the economic landscape shifts, Powell’s leadership will continue to be a focal point of debate amid ongoing uncertainty about the effects of Trump’s policies on the economy.

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