Trump Urges Powell to Resign Immediately Over Interest Rate Disagreement

U.S. President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, urging him to resign immediately. This demand follows a series of public statements from Trump, who has repeatedly expressed dissatisfaction with Powell's monetary policies, particularly the decision not to lower interest rates. Trump's remarks were made in response to a question about Powell's tenure, where he explicitly stated that Powell should step down immediately. This is not the first time Trump has voiced his discontent with Powell's leadership at the Federal Reserve. In previous statements, Trump has accused Powell of costing the economy "hundreds of billions" by maintaining higher interest rates.

The tension between Trump and Powell has been escalating, with Trump frequently criticizing the Federal Reserve's policies. Trump's latest remarks suggest a growing frustration with Powell's approach to monetary policy, which Trump believes is impeding economic growth. The president's comments also indicate a preference for a different leadership at the Federal Reserve, someone who would be more in line with his economic agenda.

Trump's demand for Powell's resignation was made in the presence of Treasury Secretary Scott Bessent, who was asked about Powell's future. Bessent did not directly address the question, but it was reported that Trump appeared to favor Bessent over Powell. This preference for Bessent could be seen as a strategic move by Trump, who may be considering Bessent as a potential replacement for Powell. Bessent's prominence in recent discussions about the Federal Reserve's leadership suggests that he could be a viable candidate for the position, should Powell resign or be removed.

The dynamics between Trump and Powell highlight the complex relationship between the executive branch and the Federal Reserve. While the president has the authority to appoint the Federal Reserve Chair, the independence of the Federal Reserve is a crucial aspect of its role in managing the economy. Trump's calls for Powell's resignation raise questions about the extent to which the president can influence the Federal Reserve's policies and leadership. Despite Trump's demands, Powell's resignation would require his own decision to step down, as the president cannot directly fire him. This situation underscores the delicate balance between political pressure and the independence of the Federal Reserve.