This demand highlights Trump's ongoing dissatisfaction with Powell's management of interest rates and raises questions about political norms and the independence of the Federal Reserve.
Trump Escalates Attacks on Federal Reserve Chair, Calls for Immediate Resignation
Trump Escalates Attacks on Federal Reserve Chair, Calls for Immediate Resignation
In a surprising move, President Trump demands Jerome Powell's resignation via social media amid ongoing economic debates.
In a dramatic escalation of his criticism towards Jerome Powell, the head of the Federal Reserve, President Donald Trump has publicly called for his immediate resignation. This proclamation was made on Trump's Truth Social platform, where he expressed, "Too Late should resign immediately!!!" He linked this statement to an article discussing an investigation call by a federal housing regulator, focusing on Powell's testimony regarding renovations at the Fed's Washington D.C. headquarters.
Trump initially nominated Powell during his first term but has since voiced frustration over Powell's reluctance to lower interest rates, a move Trump argues is necessary to stimulate economic growth. It remains uncertain whether Trump has the authority to remove Powell from his position. Earlier this year, the president stated he had "no intention of firing him,” showcasing some level of conflict within his administration regarding the Fed’s policies.
Powell responded to Trump’s unfounded demands during a central bankers meeting in Portugal, stating that interest rates would likely have already been reduced if not for the ramifications of Trump’s tariff policies. This reveals a complex relationship between the economic decisions of the Federal Reserve and the political climate shaped by the administration.
Despite Trump's demands, the Federal Reserve did not offer a comment addressing the president's remarks. Powell previously indicated that even if Trump asked him to resign, he would not do so, referring to legal protections that prevent the dismissal of Fed officials without just cause. A significant ruling from the U.S. Supreme Court in 1935 reinforced that officials at independent agencies could only be removed under specific conditions.
Meanwhile, Bill Pulte, the director of the Federal Housing Finance Agency, has echoed calls for Congress to investigate Powell's potential political bias and previously contentious Senate testimony. This underscores a growing faction that aligns with Trump's sentiment about the Fed's leadership, further complicating the role of the Federal Reserve amidst political pressure.
The developments evoke larger discussions about the independence of federal agencies and the influence of political power on economic policy—a central theme as Trump navigates his second term and its challenges.
Trump initially nominated Powell during his first term but has since voiced frustration over Powell's reluctance to lower interest rates, a move Trump argues is necessary to stimulate economic growth. It remains uncertain whether Trump has the authority to remove Powell from his position. Earlier this year, the president stated he had "no intention of firing him,” showcasing some level of conflict within his administration regarding the Fed’s policies.
Powell responded to Trump’s unfounded demands during a central bankers meeting in Portugal, stating that interest rates would likely have already been reduced if not for the ramifications of Trump’s tariff policies. This reveals a complex relationship between the economic decisions of the Federal Reserve and the political climate shaped by the administration.
Despite Trump's demands, the Federal Reserve did not offer a comment addressing the president's remarks. Powell previously indicated that even if Trump asked him to resign, he would not do so, referring to legal protections that prevent the dismissal of Fed officials without just cause. A significant ruling from the U.S. Supreme Court in 1935 reinforced that officials at independent agencies could only be removed under specific conditions.
Meanwhile, Bill Pulte, the director of the Federal Housing Finance Agency, has echoed calls for Congress to investigate Powell's potential political bias and previously contentious Senate testimony. This underscores a growing faction that aligns with Trump's sentiment about the Fed's leadership, further complicating the role of the Federal Reserve amidst political pressure.
The developments evoke larger discussions about the independence of federal agencies and the influence of political power on economic policy—a central theme as Trump navigates his second term and its challenges.
