Trump says he won’t replace Fed Chair Powell

US President-elect Donald Trump stated in an interview aired Sunday that he does not intend to replace Federal Reserve Chair Jerome Powell when he takes office in January, despite their history of clashes over interest rate policies.

Speaking on NBC’s Meet the Press with Kristen Welker, Trump said, “No, I don’t think so,” when asked if he would seek to remove Powell. He added, “I think if I told him to [go], he would. But if I asked him to, he probably wouldn’t.”

Powell, whose term as Fed chair runs through February 2026, has previously asserted his legal right to remain in office, saying last month that he would refuse to step down early if Trump attempted to oust him. Powell emphasised that such a move is “not permitted under the law.”

Trump appointed Powell as Fed chair in 2018, succeeding Janet Yellen, who later served as Treasury Secretary under President Joe Biden. However, their relationship soured during Trump’s first term, with the then-president frequently criticising Powell and the Federal Reserve for their policy decisions, a break from the long-standing tradition of U.S. presidents avoiding direct criticism of the central bank.

Despite their turbulent history, Trump’s decision not to challenge Powell signals a potential shift in tone as he prepares to lead amid economic uncertainties.

Attribution: Reuters