According to CNN, a senior advisor to Trump revealed that President-elect Trump may still allow Federal Reserve Chairman Powell to complete his remaining term, which will expire in May 2026.

The advisor warned that Trump can always change his mind, but his current view, along with his economic team, is that Powell should continue to lead the Federal Reserve as they implement a policy of interest rate cuts. Trump told Bloomberg in July that he planned to keep Powell in office at least for his term.

However, at his first press conference after Thursday's election, Powell was still asked about job security. When asked if he would resign early at Trump's request, Powell simply replied 'no.' Powell later clarified that he believes Trump cannot fire him.

"The law does not allow," Powell said.

In 2018, Trump appointed Powell, a former private equity executive and Republican who had served on the Federal Reserve Board, as Federal Reserve Chairman. Biden later nominated Powell for a second four-year term in 2022.

It is said that during Trump's first administration, Gary Cohn, Powell's former colleague at Goldman Sachs who served as the economic policy chief, wanted this position. However, former Trump officials stated that Cohn's resignation in protest of Trump's steel tariffs made it unlikely for him to get this position.

Information sources connected to Trump's transition team mentioned potential candidates for Federal Reserve Chairman, including Kevin Warsh, who served on the Federal Reserve Board for five years, providing advice during Trump's first term; and Trump's former Chief Economist Kevin Hassett.

In July, before Trump was elected President of the USA, Powell was asked if he planned to complete the remaining term, and he unequivocally said, "Yes."

Trump often expresses dissatisfaction with Powell, occasionally threatening to dismiss the Chairman of the Federal Reserve, something no previous president has done.

Trump also criticized what he believed to be the lack of transparency at the Federal Reserve, as the Fed conducts policy deliberations privately and releases the discussion records weeks later. CNN reported that Trump's aides said he wanted to publish these meeting minutes and economic reports in real-time, and wanted the meetings to be held in front of cameras.

The Grudges between Trump and Powell

Trump and Powell clashed multiple times during his first term, with the incoming president threatening to fire Powell on several occasions.

In 2018, Trump stated that after the Fed raised interest rates, he was considering replacing Powell as the new Chair of the Federal Reserve. However, once confirmed, a president cannot easily dismiss the Chair of the Federal Reserve unless they violate the law.

After the outbreak of the pandemic in March 2020 led to a market crash, Trump told reporters that he "has the right to dismiss (Powell) from the position of Chairman of the Federal Reserve," adding, "In my view, so far, he has made many wrong decisions."

Recently, Trump also stated that the Chairman of the Federal Reserve is one of the easiest jobs in government. "You come to the office once a month, say, 'Let's flip a coin,' and everyone talks about you like you're a god," Trump said in an event hosted by the Economic Club of Chicago last month.

Trump also stated that he previously threatened to dismiss Powell, "because he kept interest rates too high", leading to "excessive rate cuts".

Although Powell has the most influence at the Federal Open Market Committee (FOMC) meetings, he is not the only official who determines at which level interest rates should be set. At each monetary policy meeting, there are 11 other Fed officials voting on interest rate adjustments.

Editor/Rocky