In brief
Trump's call comes amidst growing tensions over interest rates and economic policies.
Former President Donald Trump has called for Jerome Powell, the chair of the Federal Reserve, to resign "immediately," intensifying his criticism of the central bank leader. Posting on his Truth Social platform, Trump expressed his frustration, stating, "'Too Late' should resign immediately!!!" and linked to an article discussing allegations against Powell regarding his congressional testimony.Trump, who appointed Powell during his presidency, has long complained about the Fed's reluctance to cut interest rates. However, it's uncertain if the president has the authority to dismiss Powell outright. In prior statements, Trump indicated he had "no intention" of firing Powell despite ongoing disputes.Recently, Powell revealed that the Federal Reserve would likely have adjusted interest rates already if Trump's tariff policies hadn't complicated the situation. When questioned by other central bankers in Portugal, Powell suggested that Trump's tariffs were a significant factor inhibiting rate cuts.While the Fed maintained silence on Trump's comments, Powell previously stated he wouldn't step down if asked, noting the legality of his position. Board members of independent federal agencies, like the Fed, can only be removed "for cause," according to a US Supreme Court ruling.Critique of Powell isn’t just coming from Trump—Federal Housing Finance Agency director Bill Pulte has also called for an investigation into Powell’s biases and testimonies, insisting that there are grounds for removal. Pulte condemned Powell's recent Senate testimony as "misleading and inaccurate."Stay tuned as this political landscape continues to evolve!
