Jerome Powell stands firm amid Trump's resignation pressure

Federal Reserve Chair Jerome Powell has informed associates that he will not resign despite President Donald Trump's calls for him to do so. Powell is determined to withstand the pressure from the president's demands to lower interest rates and maintain the Fed's independence.

Powell believes that stepping down would compromise the Fed's autonomy from political influence. He has emphasized the importance of preserving the institution's independence, stating that resigning would undermine this principle.

Remaining in office until May 2026 means Powell will continue to face criticism from the White House over the Fed's decisions on interest rates. This pressure has raised concerns about the potential economic impact of politicizing monetary policy.

Despite being initially praised for his non-partisan approach, Powell's refusal to comply with Trump's calls for rate cuts has strained their relationship. Trump has openly criticized Powell, calling him "terrible" and expressing his desire for Powell to resign.

While Trump has refrained from firing Powell due to potential market repercussions, his administration has intensified efforts to discredit Powell and push him to step down. Trump's allies have focused on the Fed's renovation costs as a means to pressure Powell into cutting rates.

Powell has remained focused on his duties at the Fed and has received bipartisan support for his commitment to economic considerations over political pressures. Despite facing criticism, Powell has indicated his intention to fulfill his term and continue making decisions based on economic principles.