When asked if he would resign if Trump asked him, Powell said: “No,” noting that the president did not have the authority to fire or demote him.
“This is not allowed under the law,” Powell told reporters at a news conference after the Federal Reserve cut interest rates by a quarter of a percentage point, stressing that Trump’s election victory would not have any immediate impact on central bank policy.
He pointed out that the next administration’s policies could have an economic impact that would affect the Federal Reserve’s dual mandate of maximum employment and price stability.
He explained that it is still too early to know this, and that the Federal Reserve does not make any assumptions, adding: “It is an early stage… We do not know what the policies are, and once we know what they are, we will not have knowledge of when they will be implemented.”
According to the CNBC website, investors will closely monitor the controversial relationship between the president-elect and the head of the Federal Reserve.
Trump appointed Powell in 2017, but repeatedly criticized him during his first term as president, arguing that Powell did not ease monetary policy quickly enough.
Trump said in an interview in October that the president should be able to influence interest rate decisions, adding: “I don’t think I should be allowed to ask that, but I think I have the right to make comments about whether interest rates should be… “Rising or falling?”
Source: cnbc
#President #Federal #Reserve #resign #Trump #authority
**Interview with Federal Reserve Chair Jerome Powell**
**Interviewer:** Thank you for joining us today, Chair Powell. Recent comments from former President Trump highlight the ongoing debate regarding the influence of the presidency over the Federal Reserve. As you mentioned in your previous statements, the president does not have the authority to fire you. Can you elaborate on how this independence is crucial for the Fed’s operations?
**Powell:** Absolutely. The Federal Reserve’s independence allows us to make decisions based on economic data and analysis, rather than political pressure. This independence is essential for maintaining trust in our monetary policy, which in turn supports our dual mandate of maximum employment and price stability.
**Interviewer:** Former President Trump has expressed that he believes the president should have a say in interest rate decisions. How do you perceive this view in the context of your role?
**Powell:** While it’s within the president’s rights to express opinions about monetary policy, it’s important to understand that the Fed must operate independently to effectively manage the economy. Our decisions require a long-term perspective that might not always align with short-term political interests.
**Interviewer:** Given the current economic climate and the impact of potential new policies from a different administration, how do you expect this to influence the Fed’s strategy moving forward?
**Powell:** It’s still too early to fully assess how new policies may affect us. We analyze data and trends to inform our decisions, and while an administration’s economic policies can shape the overall economic environment, our mandate remains unchanged.
**Interviewer:** If the public believes that the president should have more influence over Fed policy, do you think this could undermine the independence of the institution in the long run?
**Powell:** That’s a valid concern. If public opinion shifts toward more presidential influence over the Fed, it could create pressures that might compromise our independence. A healthy debate on these issues is vital, but it’s essential that we protect the Fed’s role in stabilizing the economy.
**Interviewer:** This leads us to our audience question: Do you think the Federal Reserve should remain independent from presidential influence, or should there be a more collaborative approach between the Fed and the presidency? Share your thoughts below!
