Can Donald Trump Fire Fed Chair Jerome Powell Before His Term Ends? Explained

Federal Reserve Chairman Jerome Powell on Thursday said that he will not step down even if President-elect Donald Trump asks for his resignation. His statement comes hours after CNN cited a senior Trump advisor to report that the Republican nominee is likely to allow Powell to complete his term. The 71-year-old's term expires in May 2026. Powell was asked whether he would resign if requested to by Trump, who will take over the White House in January. "No," the Fed chair quicky responded. He told reporters that the president does not have the power to fire or demote him.Read More: “Not permitted under the law,” Powell said after the Fed cut interest rates by a quarter percentage point. Donald Trump appointed Powell in 2017, but continously slammed him during his first term, arguing that the Fed chair was not easing monetary policy quickly enough.In October Trump said that the president should be able to weigh in on interest rate decisions. “I don’t think I should be allowed to order it, but I think I have the right to put in comments as to whether the interest rates should go up or down."Read More:

Can Donald Trump Fire Fed Chair Jerome Powell?Technically, the US president cannot directly fire the Federal Reserve Chair. The Federal Reserve Act grants the Chair a four-year term, and removal is generally limited to cause, such as neglect of duty or malfeasance, making it challenging to dismiss them solely for policy disagreements.