U.S Fed Chief won’t resign

Jerome Powell, the chairman of the Federal Reserve, stated that he will not resign if President-elect Donald Trump requests it.

The Fed chair merely responded, “No,” when asked if he would step down if Trump asked him to. Powell later informed reporters that the president is powerless to demote or fire him.

Powell told reporters at a press conference, “Not permitted under the law.” after the Fed lowered interest rates by a quarter percentage point.

The tense relationship between the president-elect and the Fed chair will be closely monitored by investors. Powell was appointed by Trump in 2017, but during his first term in office, Trump frequently attacked the head of the central bank, claiming Powell was not easing monetary policy fast enough.

Powell added on Thursday that the central bank’s policy would not be immediately affected by Trump’s election victory this week. Powell informed reporters that the election would not impact our policy choices in the near future. In Tuesday’s election, the Republican Party also secured a majority in the Senate. Trump should have an easier time enacting his economic agenda if the GOP also wins the House of Representatives.

Trump’s former Treasury Secretary Steve Mnuchin predicted that the president-elect would prioritize tax cuts and tariffs, especially against China.

Powell stated that the Fed’s dual mandate of price stability and maximum employment may be impacted by the economic effects of the actions of the next administration. However, Powell stated that the Fed is not making any assumptions and that it is still too early to know.