Powell: "Won't resign even if Trump demands... No impact on monetary policy"

"President, Dismissal of Fed Chair Legally Impossible"

Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), stated on the 7th (local time) that he will not step down even if President-elect Donald Trump demands his resignation. He also mentioned that the outcome of the U.S. presidential election would not have a short-term impact on monetary policy. This statement is interpreted as emphasizing the Fed's political independence.

At a press conference held immediately after the Federal Open Market Committee (FOMC) regular meeting that day, Chairman Powell responded to questions about his position by saying, "The law does not allow the President to dismiss the Fed Chairman."

With Trump winning the 47th U.S. presidential election, the possibility of Powell's dismissal had been a topic of discussion in the market. Trump had repeatedly expressed dissatisfaction with the Fed's interest rate hikes and vowed several times that he would dismiss Chairman Powell if he returned to the White House. Powell was appointed Fed Chairman by then-President Trump in 2018, and his term was extended until June 2026 under the Joe Biden administration.

Chairman Powell also emphasized on the 5th that the election results would not have a short-term effect on the Fed's monetary policy.

Meanwhile, U.S. CNN reported that President-elect Trump would guarantee the remainder of Powell's term. Citing a source close to the Trump transition team, CNN conveyed that the President-elect's position is that Powell should remain in office while the Fed implements interest rate cuts. However, the source also explained that Trump could change his mind at any time.