US President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell on Wednesday, calling for him to resign immediately.
“‘Too Late’ should resign immediately!!!” Trump wrote on his Truth Social platform, attaching a news article about a US federal housing regulator calling for an investigation into Powell’s testimony regarding renovations to the Federal Reserve’s Washington headquarters.
Trump originally nominated Powell during his first term but has since repeatedly criticized him for not cutting interest rates. It remains unclear whether the president has the authority to remove Powell from his position. Earlier this year, despite his harsh words, Trump said he had “no intention of firing him.”
Tariffs and Interest Rate Policy
The president is pushing the Federal Reserve to lower interest rates to stimulate economic growth. Powell stated on Tuesday that the Fed would have cut rates already if not for the impact of Trump’s tariff policies. When asked at a central bankers’ meeting in Portugal whether US rates would have been cut again this year if the administration had not raised tariffs worldwide, Powell responded, “I think that’s right.”
Powell was renominated for the position by then-President Joe Biden, with his current term set to end in May 2026. Before Trump’s return to office this year, Powell said he would not resign even if asked by the president and noted that it is “not permitted under law” for the White House to force him out. Federal Reserve Board members can only be removed “for cause,” as established by a 1935 Supreme Court ruling.
Trump has, however, frequently challenged political norms, including firing some independent regulators — actions that have faced legal challenges.
Calls for Investigation into Powell
On Wednesday, Federal Housing Finance Agency director Bill Pulte, a vocal critic of Powell, publicly called for an investigation into the Fed Chair. “I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed ‘for cause,’” Pulte wrote on X.
Last week, Powell told the Senate that reports about soaring renovation costs and costly features at the Fed’s headquarters were “misleading and inaccurate in many, many respects.”
What The Author Thinks
The ongoing conflict between the White House and the Federal Reserve highlights the delicate balance between political influence and the independence of key economic institutions. While presidents may wish to shape monetary policy to suit political goals, the Fed’s autonomy is critical to maintaining economic stability and investor confidence. The pressure Trump is applying to Powell, whether justified or not, risks undermining public trust in the Fed’s ability to act independently and prudently. Ultimately, any changes to Fed leadership must respect legal frameworks and prioritize the long-term health of the economy over short-term political gains.
Featured image credit: European Central Bank via Flickr
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