Chairman of the Federal Reserve, Jerome Powell, has stated he will not be stepping down from the position if asked when Donald Trump returns to office.
After Trump beat out Democratic candidate Kamala Harris for the White House earlier this week, there has been speculation about Powell’s post. Trump is expected to cause further disruption to borrowing costs by raising tariffs and drive up prices.
At a press conference yesterday, Powell stated that Trump is “is not permitted under law” to remove him from the position. The Reserve announced that borrowing costs will be cut, lowing the key lending rate to 4.5%-4.75%.
Powell commented: "It's such an early stage - we don't know what the policies are, we don't know when they will be implemented. In the near term, the election will have no effects on our policy decisions."
Powell was appointed by Trump in 2017, and his term will end in 2026. However, since then Trump has criticised banking officials and reportedly consulted with advisors about removing Powell, possibly denying him the ability to choose his replacement.
The Reserve has seen backlash from the public due to an unstable economy, high inflation, the hike in rates in 2022 which lead to higher borrowing costs for credit cards, loans, mortgages, and more.
Powell stated that they will continue to cut rates to stabilise the economy and the job market. It can only be estimated what impact Trump’s second term will have on prices.