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At his press conference on Thursday, Federal Reserve Chair Jerome Powell sidestepped numerous questions from reporters hoping to learn the central bank chief’s opinions on President-elect Donald Trump.
Fed policymakers, economists, and analysts will eventually have to take into consideration the firebrand Republican’s expected ambitious economic and political agenda.
During his first time in office, Trump had a negative opinion of the Powell Fed, referring to policymakers as “boneheads” and even likening Powell to a golfer who was unable to putt. Powell mainly dismissed the criticism when he was selected by Trump in November 2017 and started office the following February. He did the same on Thursday.
Powell was questioned about the Trump triumph and its implications at least half a dozen times before saying, “I’m not going to get into any of the political things here today, but thank you,” during the press conference. Powell ended the session a few minutes earlier than usual, at 3:12 p.m. ET, after a round of questions that were dominated by politics.
However, the Fed chief will almost certainly have to cope with the fallout from a Trump presidency.
Steep tax cuts, expansive government spending, and strong tariffs aimed at leveling the playing field globally are some of the anticipated policy moves in the works. Additionally, Trump has vowed to deport large numbers of unauthorized immigrants, which might change the nature of the job market.
Powell’s tenure as chair ends in February 2026, so it’s uncertain how the Trump-Powell relationship will play out this time. However, it’s likely to throw another tangle into the delicate monetary policy balance the Fed is attempting to maintain.
