President Donald Trump announcing the nomination of Jerome Powell to be Chair of the Federal Reserve in 2017|Trump White House Archived
President-elect Donald Trump said during an interview that he has no plans of removing Federal Reserve Chair Jerome Powell from the position next year, despite Trump’s criticism and threats of removing him.
Speaking to NBC’s Meet the Press, his first sit-down television interview since winning the presidency, Trump said, “I don’t see it.” He acknowledged past clashes with Powell, whom he nominated in 2017 but later called the Fed Chair “the enemy” over rate hikes in 2018. He added, “If I told him to [resign], he would. But if I asked him to, he probably wouldn’t.”
Legal barriers prevent presidents from firing a Federal Reserve chair without “for cause,” and the Supreme Court ultimately has the final say in what that means.
Powell, reappointed by President Joe Biden, has reiterated that the law protects his tenure from premature dismissal. His term ends in 2026. He has also emphasized the importance of the Fed’s independence from political influence in maintaining stable inflation and economic growth.
Trump’s easing on Powell could provide some relief to investors anticipating potential tariff increases after the January inauguration.
Meanwhile, markets anticipate a quarter-point rate cut at the Fed’s December 17–18 policy meeting, which would bring the Fed’s policy rate to the 4.25%–4.50% range.