President Donald Trump has intensified his attacks on Federal Reserve Chairman Jerome Powell, demanding his resignation “immediately” via a post on the Truth Social platform. This call follows controversy surrounding Powell's testimony about renovations at the central bank's headquarters and stems from Trump's ongoing frustration with the Fed's interest rate policies. Despite Trump's discontent, Powell's removal from the position is complicated by legal protections for federal regulators, indicating that his path to ousting Powell may not be straightforward.
Trump Demands Immediate Resignation of Federal Reserve Chair Powell
Trump Demands Immediate Resignation of Federal Reserve Chair Powell
In a bold statement, President Trump has called for the resignation of Jerome Powell, the chair of the Federal Reserve, escalating his criticism amid tensions over monetary policy.
On Wednesday, Trump criticized Powell's leadership, saying, "'Too Late' should resign immediately!!!" The former president linked his remarks to a news article covering a demand from the Federal Housing Finance Agency director, Bill Pulte, for Congress to investigate Powell over alleged political bias and misleading Senate testimony. Trump previously nominated Powell to the Fed chair position during his first term and has often expressed displeasure with the Fed's interest rates, urging the bank to swiftly implement cuts to bolster economic growth.
Powell, addressing central bankers in Portugal, noted that the Federal Reserve would have lowered interest rates earlier if not for the adverse effects linked to Trump’s own tariff strategies. When asked if rates could have been reduced this year without the announced tariff increases, Powell affirmed, “I think that’s right.”
Despite the tensions, the Federal Reserve has declined to respond to Trump's recent demands. Legal experts point out that the law permits the removal of Federal Reserve board members only for "cause," which makes Trump's repeated calls more complicated. Nonetheless, Trump has a history of challenging norms, including dismissing independent regulatory figures, which have led to legal disputes.
Federal Housing Finance Agency director Pulte is seeking examination of Powell’s actions, declaring that his testimony, related to increasing costs and lavish features of the Fed's facilities, was "misleading and inaccurate in many, many respects." This development has sparked a renewed push for scrutiny over Powell’s role, heightening the ongoing political discourse surrounding the Federal Reserve's policies amidst Trump's evolving political landscape.
Powell, addressing central bankers in Portugal, noted that the Federal Reserve would have lowered interest rates earlier if not for the adverse effects linked to Trump’s own tariff strategies. When asked if rates could have been reduced this year without the announced tariff increases, Powell affirmed, “I think that’s right.”
Despite the tensions, the Federal Reserve has declined to respond to Trump's recent demands. Legal experts point out that the law permits the removal of Federal Reserve board members only for "cause," which makes Trump's repeated calls more complicated. Nonetheless, Trump has a history of challenging norms, including dismissing independent regulatory figures, which have led to legal disputes.
Federal Housing Finance Agency director Pulte is seeking examination of Powell’s actions, declaring that his testimony, related to increasing costs and lavish features of the Fed's facilities, was "misleading and inaccurate in many, many respects." This development has sparked a renewed push for scrutiny over Powell’s role, heightening the ongoing political discourse surrounding the Federal Reserve's policies amidst Trump's evolving political landscape.
