The Federal Reserve Bank’s awaited meeting concluded on Thursday, with announcement of interest cut rate by a quarter percentage point. The Fed Chair made a lot of firm statements over economy, inflation, and his resignation.

On Thursday, Jerome Powell refused to leave the Federal Reserve Bank early. The story does not ends here, He says he will not resign even if the upcoming president, Donald Trump tries to outcast him. Over that he adds that it is not legally possible for Trump to remove him.

At The Fed Press Conference-

After the Fed meeting, at the press conference, Jerome Powell was asked several questions. Among so many questions, He was also asked if he would exit central bank leadership if asked by Trump. The Fed Chair, replied to it with a flat “NO”, adding that it is not permitted under the law. He noted that removing him, or any of the other Fed governors, ahead of the end of their terms is not permitted.

Powell dismissed numerous questions following Trump’s stated policy aims could mean for central bank decision-making. “In the near-term the election will have no effects on our policy decisions,” Powell said, he also added “we don’t guess, speculate and we don’t assume what the broader government might do.”

According to law, Any attempt to remove a US Fed Chair, could lead to many consequences. The world would not be ready for it. Even if unsuccessful, it could hurt the sentiments of financial market and investors. It would also lead to uncertainty, stock market declines, and higher bond yields. It will also create political pressure and might weaken the capabilities of Fed to control the inflation and rising prices. Increased volatility and inflation will be the outcome.

Past Relations Of Trump And Jerome Powell

Back in 2018, Donald Trump became the President, he named Jerome Powell as the Fed Chair in 2018. replacing Janet Yellen. Janet later joined President Joe Biden’s Treasury Secretary. Biden reappointed Powell to his current term.

But according to several reports, The relationship between Trump and Powell turned sour. As Trump frequently attacked the Federal Bank and its chief during his first term in office, on the policy choices of Central Bank, Although the policymakers always dismissed his harsh words.