Trump Demands Immediate Resignation of Federal Reserve Chair Powell

Calls for an investigation into Jerome Powell's conduct have added to the political drama surrounding the U.S. central bank.

Former President Donald Trump is calling for Jerome Powell, the chair of the Federal Reserve, to step down immediately in what marks a significant escalation of his ongoing criticisms. In a post on his Truth Social platform, Trump stated, "'Too Late' should resign immediately!!!" and shared a link to an article highlighting calls from a U.S. federal housing regulator for Powell's investigation over allegations surrounding his testimony regarding renovations at the central bank's headquarters.

Trump appointed Powell during his first term, yet has continuously critiqued him for not reducing interest rates to stimulate the economy. While it remains uncertain whether Trump wields the authority to remove Powell, he earlier this year asserted he did not intend to dismiss the Fed chair. Trump believes that lower rates could enhance economic growth, but Powell recently indicated that rates would have already been cut had it not been for the impact of Trump's trade tariff policies.

Amid discussions at a central bankers' meeting in Portugal, Powell indicated that the administration's tariff plans influenced monetary policy decisions. The Federal Reserve declined to comment on Trump's demands when approached by outlets like the BBC.

Powell’s current term, which was extended by President Joe Biden, is set to last until May 2026. Historically, the board members of independent federal agencies, such as the Federal Reserve, can only be removed "for cause," as ruled by the U.S. Supreme Court in 1935. Trump's past attempts to challenge political norms, including the removal of independent regulators, have prompted legal scrutiny.

In a new twist, Federal Housing Finance Agency Director Bill Pulte has called for Congress to investigate Powell, citing his alleged political bias and misleading Senate testimonies. Last week, Powell denied claims regarding costly features at the Federal Reserve's headquarters, labeling them "misleading and inaccurate in many, many respects."