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Powell Dismisses Resignation Rumors, Vows to Serve Until 2026

7/29/2025

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Summary

Story summary

Federal Reserve Chairman Jerome Powell firmly dismissed resignation rumors, pledging to serve until May 2026. Amid ongoing tensions with President Trump, who has criticized Powell's leadership and the Fed's expenses, White House officials reaffirmed their support, highlighting the importance of the Fed's independence despite Trump's calls for rate cuts.

History

Historical Context

The Federal Reserve Reform Act of 1977 established the Fed's independence, crucial for stabilizing an economy plagued by 13.5% inflation that year. This autonomy allows the Fed to set monetary policy free from political influence. Jerome Powell's ongoing leadership, confirmed for a second term in May 2022, underscores the importance of maintaining this independence amid political scrutiny and economic challenges.

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Story summary

Federal Reserve Chairman Jerome Powell firmly dismissed resignation rumors, pledging to serve until May 2026. Amid ongoing tensions with President Trump, who has criticized Powell's leadership and the Fed's expenses, White House officials reaffirmed their support, highlighting the importance of the Fed's independence despite Trump's calls for rate cuts.

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