In a recent post on his Truth Social platform, President Donald Trump has escalated his ongoing feud with Federal Reserve Chair Jerome Powell, demanding that he resign "immediately." This comes as Trump expresses frustrations over Powell’s reluctance to lower interest rates amid questioning of the Fed's operations. The president's latest outburst follows a call for an investigation into Powell by the Federal Housing Finance Agency director, further complicating the dynamics between the White House and the central bank.
Trump Demands Immediate Resignation of Federal Reserve Chair Jerome Powell
Trump Demands Immediate Resignation of Federal Reserve Chair Jerome Powell
In a bold move, President Trump intensifies his critique of Jerome Powell, calling for his immediate resignation from the Federal Reserve.
In his post, Trump referenced an article discussing calls for Powell to be scrutinized due to his Senate testimony regarding renovations within the Federal Reserve’s Washington headquarters. The tension between the two has been evident since Trump nominated Powell during his first term; while he has expressed repeated dissatisfaction with Powell's rate policies, he previously stated he had "no intention of firing him."
Despite Trump's wishes for rate cuts to stimulate economic growth, Powell remarked that the Fed would have already reduced rates if not for the influences of Trump's tariff strategies. This has fueled a back-and-forth on economic approaches, with Powell affirming that tariffs had a significant impact on monetary policy decisions.
In response to Trump's demands, the Federal Reserve has remained officially silent. Powell has previously asserted that he would not resign if asked by Trump, citing legal protections afforded to heads of independent federal agencies.
The backdrop to this conflict includes a Supreme Court ruling that limits the ability to dismiss board members without cause, raising questions about the president's authority in this matter. However, Trump’s disregard for traditional protocols has led to notable clashes with independent regulators in the past.
Adding to the controversy, Bill Pulte, the chief of the Federal Housing Finance Agency, has now called for an investigation into Powell's political bias and actions during his testimony before the Senate, further amplifying the scrutiny around the Fed's leadership.
As the political landscape evolves, this tension between the Trump administration and the Federal Reserve highlights ongoing debates about monetary policy and the central bank's independence.
Despite Trump's wishes for rate cuts to stimulate economic growth, Powell remarked that the Fed would have already reduced rates if not for the influences of Trump's tariff strategies. This has fueled a back-and-forth on economic approaches, with Powell affirming that tariffs had a significant impact on monetary policy decisions.
In response to Trump's demands, the Federal Reserve has remained officially silent. Powell has previously asserted that he would not resign if asked by Trump, citing legal protections afforded to heads of independent federal agencies.
The backdrop to this conflict includes a Supreme Court ruling that limits the ability to dismiss board members without cause, raising questions about the president's authority in this matter. However, Trump’s disregard for traditional protocols has led to notable clashes with independent regulators in the past.
Adding to the controversy, Bill Pulte, the chief of the Federal Housing Finance Agency, has now called for an investigation into Powell's political bias and actions during his testimony before the Senate, further amplifying the scrutiny around the Fed's leadership.
As the political landscape evolves, this tension between the Trump administration and the Federal Reserve highlights ongoing debates about monetary policy and the central bank's independence.
