Updated: December 22, 2024
Key Takeaways
Jerome Powell is expected to remain Federal Reserve Chair until May 2026 under a potential second Trump presidency.
Trump’s relationship with Powell has been contentious, with past threats to remove Powell due to interest rate hikes.
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Federal Reserve Chair Jerome Powell is likely to complete his term through May 2026 under a potential second Trump presidency, according to a senior adviser to Donald Trump who spoke to CNN on condition of anonymity.
The adviser indicated that while Trump could alter his position, both he and his economic team currently support Powell remaining at the central bank’s helm as it moves toward cutting interest rates.
Powell, a Republican and former private equity executive with previous experience on the Fed’s governing board, was initially appointed by Trump in 2018. He received a second four-year term appointment from President Joe Biden.
The relationship between Trump and Powell has been contentious, with Trump threatening Powell’s position multiple times during his presidency. In 2018, Trump considered replacing Powell after the Fed increased interest rates, though presidential authority to remove a Fed chair is limited.
At a recent Economic Club of Chicago event, Trump downplayed the Fed chair’s role, stating:
“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.”
Last month, Powell’s Jackson Hole speech led to a Bitcoin price surge as he indicated a forthcoming Fed policy adjustment on interest rates.
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