In a bold assertion of independence, Federal Reserve Chair Jerome Powell declared he would not step down if incoming President Donald Trump pressured him.

This statement came after the Fed reduced interest rates by a quarter point, setting rates between 4.5% and 4.75%, a notable decrease from their recent peak of 5.25% to 5.5%, as reported by First Post.

Trump, known for his disdain of the Fed’s autonomy, has previously labeled its officials “boneheads” and even suggested he should have a role in setting rates himself. When asked if he would yield to Trump’s influence, Powell’s response was a firm “no.”

REPORTER: If Trump asked you to leave would you go? Jay Powell: No

REPORTER: You’re not required to leave?
Jay Powell: No

Q: If the Fed doesn’t answer to the President of the USA, who does it answer to?!🤔 pic.twitter.com/q8J1mrT6W7

— Radar🚨 (@RadarHits) November 7, 2024

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Powell underscored that federal law prevents the White House from dismissing the Fed chair, reaffirming the central bank’s legal independence. He explained, “The job’s not done,” but emphasized that the recent rate cut signals that inflation is gradually easing, a shift the Fed believes will continue under its watchful eye.

This rate cut, the second in 2024, reflects optimism that inflation is moderating. In September, the Fed adjusted rates for the first time since 2020. Key indicators like the personal consumption expenditure (PCE) price index and the Consumer Price Index (CPI) show inflation cooling, with the PCE at 2.1% and the CPI at a three-year low of 2.4%.

Powell stated that these numbers inspire “confidence that we’re on a sustainable path down to 2%,” but cautioned that the path remains challenging. The Fed’s rate adjustments are part of its dual mandate to balance inflation control with labor market health.

In typical Trump style, the former reality star has been vocal about his views on the Fed’s decisions. He argued during his campaign that the Fed was making errors in its rate adjustments and hinted at taking action if he disagreed with the bank’s moves.

Trump’s statements, including his belief that he has a “better instinct” than many Fed members, hint at a potentially rocky relationship between the White House and the Fed.

Trump, who appointed Powell in 2018, acknowledged in August that he would “let him serve it out” if Powell’s policies aligned with his interests.

The Executive Branch should be under the direction of the president

That’s how the Constitution was designed

The Federal Reserve is one of many examples of how we’ve deviated from the Constitution in that regard

Yet another reason why we should #EndTheFed pic.twitter.com/qfW7tFdhe8

— Mike Lee (@BasedMikeLee) November 8, 2024

However, he reiterated his view that the president should influence the Fed’s decisions, saying, “I made a lot of money. I was very successful. And I think I have a better instinct than, in many cases, people that would be on the Federal Reserve – or the chairman.”

Reflecting on the Fed’s independence, Powell remarked that the election results would not impact the Fed’s immediate policy choices.

“We don’t know what the timing and substance of any policy changes will be. We therefore don’t know what the effects on the economy would be,” Powell stated. The Fed’s next policy meeting is slated for December 10-11, where it will further assess economic conditions.

Powell’s unwavering stance underscores the Fed’s autonomy, a principle likely to be tested as Trump returns to the Oval Office.