Chair Powell Asserts He Will Not Resign Under Trump’s Request
This week’s FOMC meeting concluded with a 25 basis point interest rate cut. Fed Chair Jerome Powell stated he intends to serve his full term, ending in 2026, despite any requests from President-elect Donald Trump.
Powell confirmed he would not resign at the new administration's request, emphasizing that removing a chair is “not permitted under law.” Trump previously indicated he would allow Powell to complete his term but had threatened removal during his first presidency.
At the Bitcoin 2024 conference, Trump promised to “fire Gensler on day one,” which generated significant enthusiasm among attendees. If Trump resumes office, agency chairs often resign following the departure of their nominating president. Historical precedents include Mary Jo White and Jay Clayton, who resigned shortly after changes in administration.
Legal experts suggest that even if SEC Chair Gary Gensler does not resign before Inauguration Day, Trump could appoint a current commissioner as acting chair. The legality of firing an agency chair remains ambiguous, with courts typically allowing removal only for “inefficiency, neglect of duty or malfeasance in office.”
Current speculation suggests Commissioner Mark Uyeda may serve as acting chair until Trump nominates a replacement. Dan Gallagher, chief legal officer at Robinhood, is rumored to be on Trump’s shortlist for the position.
If Gensler were wise, he would consider reaching out to Powell.