Trump won't replace Fed chair Powell but seeks policy sway
Donald Trump does not plan to replace Jerome Powell as the chairman of the Federal Reserve after his inauguration and return to the White House. "No, I don’t think so. I don’t see it," said the president-elect on Sunday on NBC.
During his presidential campaign, Donald Trump repeatedly spoke about the monetary policy of the United States, suggesting that he would like to influence it. However, the Federal Reserve is an independent entity, and its chairman, Jerome Powell, does not intend to yield to political pressure.
Trump seeks influence over monetary policy
According to Bloomberg, citing Donald Trump's statement on NBC, the president-elect does not plan to replace Jerome Powell as the chairman of the Fed when he moves into the White House after being sworn in next January.
"No, I don’t think so. I don’t see it," Trump stated on the morning show Meet the Press on NBC.
Powell, whose term as chairman of the Federal Reserve expires in May 2026, told reporters last month that he would not step down early if Trump asked him to resign.
"I think if I told him to, he would," Trump said on NBC, in his first television interview since winning the election in November. "But if I asked him to, he probably wouldn’t. But if I told him to, he would," Trump added.
Powell stands firm on independence
A few days before the election, Powell emphasized that he is prepared to defend the independence of the Federal Reserve against political pressures, noting that the new president does not have the authority to dismiss him or other high-ranking officials within the Federal Reserve.
A Fed spokesman declined to comment on Trump's recent statements when asked by Bloomberg.
At a press conference on November 7, Powell stated that he does not anticipate any tensions with the new administration. When asked if he would leave his position if Trump requested it, he responded, "no."
