Powell Asserts Legal Immunity Amid Trump Criticism

Federal Reserve Chair Jerome Powell has affirmed that he will not resign if President-elect Donald Trump requests it, emphasizing that such an action by the president would not be legally permissible. This assertion follows the Fed's decision to cut interest rates by a quarter point amid a decline in inflation, marking the second consecutive rate cut aimed at supporting economic expansion. Despite Trump's history of criticizing Powell and suggesting changes to the Fed’s independence, current reports indicate that Trump is likely to allow Powell to complete his term, which ends in May 2026. This ongoing tension highlights the delicate balance Powell must maintain as he navigates potential political pressures from a Trump administration. The Fed has reiterated its commitment to independent policymaking, with Powell stating that the election will not impact near-term interest rate decisions. However, Trump's economic policies, including tariffs and tax cuts, could pose challenges to the Fed's goals of maintaining inflation and employment balance.