In an unexpected move, former President Donald Trump called for Jerome Powell, Chair of the Federal Reserve, to resign immediately, citing dissatisfaction with his policies and recent testimonies.
Trump Demands Immediate Resignation of Fed Chair Powell
Trump Demands Immediate Resignation of Fed Chair Powell
Former President escalates his critique of the Federal Reserve's leadership as tensions rise over interest rates.
In a bold post on his Truth Social platform, Trump stated, "Too Late should resign immediately!!!," linking to an article discussing calls for Powell to be investigated concerning his testimony about renovations to the Fed's Washington headquarters. Trump's demand marks a significant intensification of his ongoing criticism aimed at Powell, whom he appointed during his first term.
Despite Trump's grievances regarding the Federal Reserve’s handling of interest rates, he had previously mentioned that he had "no intention of firing" Powell nor does he possess the authority to remove him without cause. Powell's leadership has come under fire as Trump insists the Federal Reserve should lower interest rates to foster economic growth.
In a recent meeting of global central bankers in Portugal, Powell indicated that higher tariffs imposed by the Trump administration had contributed to the Fed's hesitant stance on cutting interest rates. "I think that's right," Powell confirmed when asked if rates might have been lowered without the tariff policy in place.
The Federal Reserve declined to comment on Trump’s latest remarks. Powell's term is set to run until May 2026, having been renominated by current President Joe Biden. Powell has maintained that he would not resign at Trump's behest, citing legal protections against arbitrary dismissal from independent federal agencies. According to a precedent set by the Supreme Court in 1935, members of independent regulatory bodies like the Fed can only be removed "for cause".
Trump's administration often challenged established political norms, including the firing of independent regulators—a move that faced legal scrutiny. Additionally, Federal Housing Finance Agency Director Bill Pulte joined the fray, demanding an investigation into Powell for alleged political bias and misleading testimonies, intensifying the scrutiny around the Fed's leadership amidst rising costs.
As Trump navigates his latest term, observers continue to watch closely for further developments in the relationship between the White House and the Federal Reserve.
