Federal Reserve Chair Jerome Powell made it clear that he would not resign if asked to do so by President-elect Donald Trump, with whom he clashed several times during his first term. This statement came in response to a reporter's question at Thursday's post-meeting press conference.
President Trump has previously claimed that he has the authority to fire Powell, but Powell firmly refuted this assertion. Powell emphasized that it is not permitted under the law for the President to remove a Fed official once they have been confirmed. The only circumstance under which a Fed official can be removed from their position is if they are found to have violated the law.
This exchange highlights the independence of the Federal Reserve from political influence. The Federal Reserve operates as an independent entity to ensure that monetary policy decisions are made in the best interest of the economy, free from political pressure.
Jerome Powell's steadfast response underscores his commitment to fulfilling his duties as the Federal Reserve Chair without succumbing to external pressures. Powell's stance reflects the importance of maintaining the integrity and autonomy of the Federal Reserve in carrying out its mandate to promote maximum employment, stable prices, and moderate long-term interest rates.
