If Trump requested Powell's resignation as Fed chief, Powell would not resign.

• On Thursday, Jerome Powell, the Chairman of the Federal Reserve, stated that the president lacks the legal authority to dismiss or downgrade him.
• Powell responded with a firm "No" when asked if he would resign if President-elect Trump requested it.

Jerome Powell, the Federal Reserve Chairman, stated on Thursday that he would not resign if requested to do so by President-elect Donald Trump.

If asked by Trump to resign, the Fed chair responded with a firm "No." Later, Powell clarified to reporters that Trump lacks the authority to dismiss or demote him.

Powell informed reporters at a press conference that the Fed's decision to cut interest rates by a quarter percentage point was not allowed under the law.

The president-elect's contentious relationship with the Fed chair will be closely monitored by investors. Trump appointed Powell in 2017, but frequently criticized the central bank chief during his first term, arguing that Powell was not easing monetary policy quickly enough.

In an October interview, Trump stated that the president should have a say in interest rate decisions.

Trump stated to Bloomberg News at the Chicago Economic Club on Oct. 15 that although he may not be permitted to order it, he believes he has the right to express his opinions on whether interest rates should increase or decrease through comments.

In March 2020, as Covid-19 hit the country, Trump asserted his right to dismiss Powell from his position. Powell's term with the Fed ends in 2026.

Trump's election victory this week will not affect the central bank's policy, according to Powell's statement on Thursday.

Powell informed reporters that our policy decisions will not be impacted by the upcoming election in the short term.

If the GOP wins the House of Representatives, Trump will have an easier path to pass his economic agenda.

Steve Mnuchin, Trump's ex-Treasury Secretary, stated that the president-elect is likely to prioritize reducing taxes and imposing tariffs, particularly on China.

Powell stated that the policies of the next administration may affect the Fed's dual mandate of maximum employment and price stability, but it is too early to determine and the Fed is not making any assumptions.

Powell stated that it is still in the early stages, and we lack knowledge about the policies. Once we become aware of them, we won't be able to determine when they will be implemented, he added.