In brief
Trump escalates his attacks on the Federal Reserve Chairman, calling for his immediate resignation while citing recent controversies and economic challenges.
In a startling announcement on his Truth Social platform, former President Donald Trump urged Jerome Powell, the chair of the Federal Reserve, to resign "immediately." This demand marks a significant uptick in Trump's ongoing criticisms of Powell, whom he appointed during his presidency, for not reducing interest rates to stimulate economic growth. Alongside his call for resignation, Trump linked to a news article discussing a federal housing director's request for Powell's investigation over allegedly misleading Senate testimony. Despite Trump's past insistence that he had no intentions of firing Powell, his impatience appears to grow as he advocates for looser monetary policy.In response, Powell recently noted that interest rate cuts had been hampered by Trump's own trade tariffs. The Federal Reserve withheld comments regarding Trump's demand, though it's worth noting that Powell's term, renominated by President Biden, lasts until May 2026. Legal experts assert that Trump lacks the authority to dismiss Powell, as only Congress can remove Federal Reserve officials "for cause," according to a Supreme Court ruling from 1935. Yet, Trump's previous confrontations with political norms could signal another unpredictable chapter in U.S. economics and governance as political dynamics shift.
