U.S. president-elect Donald Trump has said he will not try to replace Federal Reserve Chair Jerome Powell and will let the central bank chief finish his current term that runs until May 2026.
In an interview on the television show “Meet the Press,” Trump said he has no plans to cut Powell’s tenure short at the central bank.
“I don’t see it,” Trump said when asked if he’ll try and remove Powell from the Fed.
Trump appointed Powell, a Republican and former private equity executive, as chairman of the Federal Reserve in February 2018.
However, soon after appointing him, Trump began talking publicly about removing him and putting decisions about interest rates under the purview of the White House.
Trump and Powell clashed several times during Trump’s first term, with Trump threatening to fire him on repeated occasions.
In 2022, current Democratic President Joe Biden reappointed Powell to a second four-year term that ends in 2026.
Powell offered a sharp “no” to recent questions over whether he would leave his post early to allow Trump to pick a replacement sooner.
The central bank chair also said that he doesn’t think Trump can fire him. “Not permitted under the law,” Powell said at a postelection news conference.
Analysts have repeatedly said that any attempt by Trump to remove Powell early would rattle financial markets, something Trump wants to avoid.
However, tensions between Trump and Powell will be watched closely, say central bank observers.
Trump has lashed out at Powell repeatedly over the years, arguing that he has not moved quickly enough to lower interest rates and stimulate the U.S. economy.
The president-elect has said often that he should have the power to weigh in on interest rate decisions, which are made independently by the Fed.
Of Powell’s job, Trump said on the election campaign trail this year, “You show up to the office once a month, and you say, ‘Let’s flip a coin,’ and everybody talks about you like you’re a god.”
The U.S. Federal Reserve’s next decision on interest rates is scheduled for Dec. 18.
