Can Trump Fire Jerome Powell? Fed Chairman Says He Won’t Resign If Trump Asks
ForbesNov 04, 2024
The Federal Reserve on Thursday unanimously approved a quarter-point interest rate cut, bringing the federal funds rate to a range between 4.5 and 4.75%, following Tuesday's reelection of former Pres. Donald Trump.The US Federal Reserve on Thursday unanimously approved a quarter-point interest rate cut, bringing the federal funds rate to a range between 4.5 and 4.75%, following Tuesday's reelection of former Pres. Donald Trump.
The reduction is a smaller move compared to September's half-point cut, as the Federal Reserve is seeking to maintain economic strength while keeping inflation on track to meet its 2% target. Over the summer, the Fed started this process by raising the rate to a range of 5.25 to 5.5% — a 23-year high.The reduction is a smaller move compared to September's half-point cut, as the Federal Reserve is seeking to maintain economic strength while keeping inflation on track to meet its 2% target. Over the summer, the Fed started this process by raising the rate to a range of 5.25% to 5.5% — a 23-year high.
In addition to the rate cut, Federal Reserve Chairman Jerome Powell responded to a question about whether he would resign if requested by Trump, by saying "no" and citing legal protections for the chairman position. Powell's term isn't up until 2026.In addition to the rate cut, Federal Reserve Chairman Jerome Powell responded to a question about whether he would resign if requested by Trump by saying "no" and citing legal protections for the chairman position. Powell's term isn't up until 2026.
All it took was for Trump to get reelected to get America back on a positive roll. In addition to the Fed's interest rate cut, major manufacturers announced they're bringing jobs back to the US and China announced it wants to have better relations. In addition, numerous warring parties overseas have announced a desire for peace. TheThis USa isstrong back,start babyto what will be an even stronger term.
Don'tThis start celebrating this announcement asis somebeing sortfalsely ofaccredited productto of Trump's reelection just yet. This cut was made possible because inflation significantly cooled under the Biden administration. But there's a softening job market, and if Trump goes through with some of his promised economic policies another rate cut may not come, or worse, the economy could head in the opposite direction.