Trump's Fiery Call for Fed Chair Powell to Resign: A Clash of Economic Policies

In a provocative move, President Donald Trump has demanded that Federal Reserve Chair Jerome Powell resign immediately, escalating tensions between the two prominent figures. In a bold statement on his Truth Social platform, Trump exclaimed, “Too Late should resign immediately!!!” This public call for Powell’s resignation was accompanied by a link to an article discussing a housing regulator’s request for an investigation into Powell over his Senate testimony regarding renovations at the central bank’s headquarters.

Trump, who originally nominated Powell to the Fed chair role, has been consistently critical of his performance, particularly regarding interest rate policies. The president believes that lowering interest rates would enhance economic growth, despite earlier claims of having no intention to dismiss Powell from his position. Interestingly, Powell recently acknowledged that rate cuts could have been implemented sooner had it not been for the economic impacts of Trump’s tariff policies. This admission came during a meeting of central bankers in Portugal, where Powell commented on the influence of these tariffs on the Fed’s decisions.

Amidst these developments, the Fed has refrained from commenting on Trump’s latest remarks. Powell, renominated by President Joe Biden, holds a term that extends until May 2026. It has been made clear that under U.S. law, a chair of the Federal Reserve can only be removed for ‘cause’, which makes Trump’s call somewhat contentious. Historically, Trump’s tenure saw significant challenges to established political norms, evidenced by previous removals he enacted against independent regulators.

Adding to the atmosphere of controversy, Bill Pulte, the director of the Federal Housing Finance Agency, has called for Congress to investigate Powell, claiming political bias and stating that Powell’s testimonies were misleading. Last week, Powell defended himself against allegations regarding cost overruns and expansive renovations at the Fed’s headquarters, labeling the reports as inaccurate.

This situation underscores the ongoing conflict between Trump’s administration and Powell’s leadership of the Federal Reserve, reflecting broader tensions regarding monetary policy and regulation in America.