Congress
Fed’s Powell says Trump can’t fire him; `Not permitted under the law’
Federal Reserve Chair Jerome Powell had a simple response Thursday as to whether he would leave his post if President-elect Donald Trump asked him to.
“No.”
Powell, speaking to reporters after Fed policymakers cut interest rates again, tried during his press conference to avoid the political fray. Still, he made clear that he’s not going anywhere. He declared that it’s “not permitted under the law” for presidents to remove members of the independent central bank.
Despite years of criticism of the Fed chief, the once and future president said over the summer that he would let Powell finish out his term, which doesn’t end until mid-2026 — “especially if I thought he was doing the right thing.” But close advisers to Trump — who once questioned whether Powell was a “bigger enemy” to the U.S. than China’s Xi Jinping — have suggested the Fed chief should simply resign.
Trump, who says he believes the president should have a say in monetary policy, has made no secret of his preference for low interest rates and will likely resume his previous habit of tweeting barbs at the Fed chief if he thinks borrowing costs are too high. He explored the question of whether he could fire Powell during his first term, a prospect that added to market turmoil at the time.
The Fed lowered rates again on Thursday, as expected, but the timing for future cuts is less clear — in part because Trump’s policies could alter the economy’s trajectory. Bond investors pushed up yields on Wednesday as they weighed the possibility that higher tariffs and fewer immigrant workers could stoke inflation.
Powell told reporters that Fed officials always take policies — both from the executive branch and Congress — into account if they affect the economy, but “we don’t know what the timing and substance of any policy changes will be,” he said. “We therefore don’t know what the effects on the economy would be.”
A key ultraconservative holdout said Wednesday that enough progress has been made in stalled House budget talks that a blueprint needed to unlock President Donald Trump domestic policy plans could be released by the end of the week.
Rep. Ralph Norman of South Carolina is one of several Freedom Caucus members who sit on the House Budget Committee and have so far rejected Speaker Mike Johnson’s initial budget plan last week — causing GOP leaders to scramble for hundreds of billions more in spending cuts.
“We’re working on full text,” Norman said in a brief interview Wednesday. “But I will tell you, it’s promising, what we’re doing.”
Republicans are still working through deeply complex policy questions — including weighing how much in costly tax cuts the hard-liners will support. GOP leaders are acknowledging they may need to dial back some of the tax provisions to get the resolution through the Budget Committee, with senior House Republicans privately skeptical a final budget resolution can come together by Friday. They’re hopeful, instead, for next week.
Johnson’s entire timeline for passage of the Trump agenda faced near-collapse earlier this week due to the right-wing backlash. But Norman signaled he’s so far inclined to support the reworked budget resolution if “Trump’s on board with it” and if it accomplishes “what Trump wants to do” on border security, deportation operations and other measures.
Amid the House infighting, Senate Budget Committee Chair Lindsey Graham (R-S.C.) said he would move forward with his own, competing blueprint next week.
Johnson said Wednesday he was “hoping” to present a revised budget plan to his conference by the end of this week. He also urged Graham to “understand the reality of the house” as “a very different chamber with very different dynamics.”
“The House needs to lead this if we’re going to have success,” he said. “We feel very optimistic we’re getting there, and we’re going to find that equilibrium point and get this done.”
Congressional Hispanic Caucus members met privately with immigration advocacy groups Tuesday night to strategize how to counter President Donald Trump’s executive actions that have already altered the immigration system.
The goals of the meeting, which were outlined in a document obtained by POLITICO, include increasing immigration legal defense, fundraising for the influx of legal needs and messaging efforts to counter anti-immigrant rhetoric from Republicans. It’s the latest sign that Democrats are scrambling over a strategy to fight Trump as they look on from the congressional minority.
Lawmakers and immigration groups want to focus on “families, farmworkers and Dreamers,” something Democrats on Capitol Hill have been reiterating since Trump took office last month. Trump has signed multiple executive actions concerning immigration and the House GOP has been working to tee up a tough-on-migrants legislative agenda.
Recent executive orders include undoing Biden-era border policies, drastically changing the asylum system and targeting existing legal pathways. Democrats continue to reckon with their 2024 loss, after Republicans aggressively attacked them over immigration and border policies and Democrats struggled to mount an effective response. Trump has continued that messaging strategy from the White House, blitzing the airwaves and social media feeds with immigration enforcement actions.
The Senate will move forward with a budget blueprint next week setting out a two-track approach to enacting President Donald Trump’s domestic agenda, key senators said Wednesday.
The announcement, made by Senate Budget Committee Chair Lindsey Graham inside a closed-door Senate GOP lunch, comes after a competing framework from Speaker Mike Johnson and other House Republican leaders has stalled in recent days due to internal conflicts in that chamber.
Graham (R-S.C.) made a presentation on the blueprint he plans to advance, which will tee-up the Senate’s two-part reconciliation strategy — starting with a border, energy and defense bill. A tax-focused package would follow.
“I wouldn’t faint with surprise if we marked up next week,” Sen. John Kennedy (R-La.), a Budget Committee member said coming out of the lunch. A person in the meeting confirmed the Budget Committee plans to vote next week.
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