Donald Trump is expected to allow Federal Reserve Chairman Jerome Powell to remain in his position.
Trump has often expressed his frustrations with Jerome Powell and has even threatened to remove him from his role as Fed chair, an unprecedented move for any president.
Sources close to the president-elect say it will allow Powell to complete the remainder of his term, which expires in May 2026. according to CNN.
While Trump could still change his mind, the current thinking among him and his economic team is that Powell will remain at the helm of the central bank as it works to cut interest rates.
Powell, a Republican with a background in private equity, was originally tapped to lead the Federal Reserve by Trump in 2018. He was later reappointed to a second term by President Joe Biden.
The news comes as the Federal Reserve The country is expected to cut its benchmark interest rate by a quarter of a percentage point at the end of its monetary policy meeting today.
Anything that causes inflation to spike again could lead Fed policymakers to slow or even halt plans to cut interest rates further (pictured: Fed Chair Jerome Powell ).
Conservative economists warn that Donald Trump’s policies could cause inflation to rise.
Experts note that while this decision is important, it may be overshadowed by the potential economic changes that a second Trump administration could bring.
Trump’s recent election victory and the likelihood of a Republican-controlled Congress in January point to possible policy changes — from import tariffs to tax cuts to restricted immigration — that could reshape the economic landscape that U.S. policymakers see. Fed anticipated for next year.
While these changes could take months to pass Congress, even with Republican majorities, they have the potential to significantly alter the country’s growth and inflation prospects.
Trump has often expressed his frustrations with Jerome Powell and even threatened to remove him from his position as chairman of the Federal Reserve, an unprecedented move for any president.
Trump has also taken issue with the Federal Reserve’s lack of transparency, criticizing its private policy meetings and delay in releasing discussion notes. According to CNN, Trump aides have suggested he would prefer real-time release of the Fed’s minutes and economic reports, with meetings held in front of cameras for greater public understanding.
During Trump’s first term, he and Powell clashed repeatedly. In 2018, Trump openly considered replacing Powell after a rate hike by the central bank, although the president cannot legally remove a Fed chair unless he breaks the law.
