Federal Reserve Chairman Jerome Powell firmly stated that he would not resign if President Trump asked him to do so. During a press conference following a Federal Reserve meeting, Powell was questioned by reporters about rumors that some of Trump's advisers had suggested he step down. Powell dismissed the notion, affirming that he wouldn't leave his post and reiterated that there is no legal basis obligating him to do so.
When asked if the President has the authority to fire or demote him, Powell responded that the law does not permit such action. He stood by his statement when requested to clarify.
Powell's comments came after the Federal Open Market Committee (FOMC) decided to cut the target range for the benchmark overnight lending rate by 25 basis points to a range of 4.5% to 4.75%. This decision influences the cost of interbank overnight loans and affects consumer credit products such as mortgages, credit cards, and auto loans.
The rate cut was widely anticipated by the market, following signals from September's meeting and subsequent statements by policymakers. Unlike the previous occasion where there was dissent among the Fed governors, this vote was unanimous, including support from Governor Michelle Bowman.
The post-meeting statement reflected a slight shift in the Fed's economic assessment, particularly regarding the balance between controlling inflation and supporting the labor market. The committee noted that risks to achieving employment and inflation goals are roughly balanced, contrasting with the more optimistic language used in September.
