Trump Demands Immediate Resignation of Federal Reserve Chair Jerome Powell

In a bold move, former President Donald Trump has publicly called for the resignation of Federal Reserve Chairman Jerome Powell, igniting further debate over monetary policy amidst ongoing economic challenges.

Donald Trump is once again in the spotlight for his outspoken criticism of current Federal Reserve Chairman Jerome Powell. In a post on his social media platform, Truth Social, Trump stated, "'Too Late' should resign immediately!!!" This remark underscores his ongoing frustrations with the Fed's handling of interest rates, particularly as they relate to economic growth. Trump, who nominated Powell during his presidency, has consistently urged the Fed to lower rates to stimulate the economy.

Trump’s recent comments come in the wake of a report from the U.S. federal housing regulator that suggests Powell should be investigated regarding discrepancies in his testimony about renovations at the Fed's headquarters in Washington, D.C. Trump's demand for Powell’s resignation arrives despite earlier assertions that he had "no intention of firing him."

Federal Reserve officials remain tight-lipped about the president's remarks, while Powell himself indicated that had it not been for the tariffs implemented during Trump's administration, the Fed might have reduced rates earlier this year. During a gathering of central bankers in Portugal, Powell acknowledged that the economic environment shaped by Trump's tariffs influenced the Fed's rate decisions.

As Powell's term, re-nominated by President Joe Biden, nears its end in May 2026, he asserted that it is unlawful for the White House to unilaterally remove him without cause. Trump's recent critiques hint at his strategy of challenging political norms, reminiscent of actions taken during his first term when he dismissed several independent regulators.

In a related development, Bill Pulte, director of the Federal Housing Finance Agency, echoed calls for an investigation into Powell, citing alleged political bias in his Senate testimony. Powell has vehemently defended himself against claims of misleading statements regarding the Federal Reserve's operational costs.

The political drama surrounding Trump’s second term continues to unfold, leaving many observers eager to see how these tensions will shape the future of U.S. economic policy.