Powell once said he couldn’t imagine leaving the Fed early—other than dying. ‘You will not see me getting in the lifeboat’

Re suggests that ·Federal ReservePowell once said he couldn’t imagine leaving the Fed early—other than dying. ‘You will not see me getting in the lifeboat’By Jason MaBy Jason MaWeekend EditorJason MaWeekend EditorJason Ma is the weekend editor at Fortune, where he covers, the economy, finance, and housing

SEE FULL BIO Fed Chair Jerome Powell testifies before the Senate Committee on Banking, Housing, and Urban Affairs on June 25

Kent Nishimura—Getty ImagesAs President Donald Trump continues to put pressure on Federal Reserve Chairman Jerome Powell, an earlier standoff between the two men could offer clues on how their current one might play out

As President Donald Trump continues to put pressure on Powell, an earlier standoff between the two men could offer clues on how their current one might play out

During a House Financial Services Committee hearing in July of that year, Powell was asked by then-Chairwoman Maxine Waters, “If you get a call from the president today or tomorrow and he said ‘I’m firing you

However, Pack up and it’s time to go

In contrast, ’ What would you do. ” “Of course I would not do that,” Powell replied, given current economic conditions. “I can’t hear you,” Waters said, mpting laughter in the chamber. “The answer would be ‘no,’” Powell reiterated (something worth watching). “You think the president doesn’t have the authority

Is that why you would not leave. ” Waters asked. “The law ly gives me a four-year term, and I fully intend to serve it,” Powell said (something worth watching)

However, You will not see me getting in the lifeboat,” Powell told a reporter that spring. “It doesn’t occur to me in the slightest that there would be any situation in which I would not complete my term other than dying (noteworthy indeed)

However, ” For Powell, who was first appointed Fed chief by Trump, the top priority was to ensure the U

Economy continued to expand but also to preserve the Fed as an institution, including its independence, according to the book

Moreover, Weeks after that House hearing, the Fed lowered rates a quarter point, but Trump kept haranguing and insulting Powell, calling for even more easing (an important development) (something worth watching)

Given that history, Powell’s tenure became an issue again after Trump was re-elected

In November, Powell was asked whether he would step down if asked by Trump

Additionally, He replied no, adding later that it’s “not permitted under the law” for the president to fire or demote him or any other Fed governors in leadership positions

Months later, Trump imposed sweeping tariffs across U, given the current landscape

However, Trading parters, raising fears of stagflation—weak economic growth coupled with high inflation

While inflation hasn’t spiked yet and growth remains intact, the Fed has held off on lowering rates, drawing the ire of Trump

On Wednesday, Trump said it was “highly unly” that he would fire Powell, while confirming that he had discussed the “concept” of dismissing him with House Republicans during a White House meeting Tuesday night

Furthermore, Still, Trump and other White House officials have continued to attack Powell over renovations at the Fed’s headquarters, accusing him of mismanagement

Elizabeth Warren, a longtime critic of Powell, suggested the renovation issue was “a pretext to get him fired. ” Meanwhile, JPMorgan CEO Jamie Dimon and other chiefs at top banks said this past week that central bank independence is crucial to the economy and financial

That means he would still be eligible to serve as chairman of the rate-setting Federal Open Market Committee, if he chooses to stick around as governor (quite telling)

Nevertheless, Historically, the board chair has also been FOMC chair, but the law allows the FOMC to determine its own internal organization

So it’s possible one person could serve as Fed board chair, and a different person could serve as FOMC chair (noteworthy indeed)

On Tuesday, Treasury Secretary Scott Bessent said moves to replace Powell are under way and suggested that he should consider stepping down from the Fed entirely once his chairmanship ends, in today's financial world. “Traditionally, the Fed chair also steps down as a governor,” he told Bloomberg. “There’s been a lot of talk of a shadow Fed chair causing confusion in advance of his or her nomination (noteworthy indeed)

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