President-elect Donald Trump reiterated that he does not intend to remove Federal Reserve Chair Jerome Powell before his term ends in 2026 during an interview with NBC's 'Meet the Press' on December 8.
When asked if he plans to replace Powell, Trump responded, 'No, I don't think so. I don't see it.' He acknowledged that while he could influence Powell, he currently has no intentions to do so.
Trump has previously suggested that presidents should have a greater say in Federal Reserve policies, citing his own financial success as a basis for his opinions on interest rates.
Powell, who was nominated by Trump and later renominated by President Biden, expressed confidence in the Fed's independence, stating, 'I'm not concerned that there's some risk that we would lose our statutory independence.' He emphasized the importance of a respectful partnership between the Fed and the Treasury Department.
Market analysts have speculated about the Fed's future under a second Trump term, particularly in light of comments from Scott Bessent, a potential Treasury secretary, regarding Powell's successor. However, Powell maintains that the Fed will uphold its legal independence.
The Federal Open Market Committee is scheduled to meet on December 17 and 18 to discuss future interest rate policies, amid indications from the futures market that a pause in rate cuts is likely.