Trump Calls for Powell's Resignation Amidst Criticism Over Interest Rates

Donald Trump, in a recent social-media post, called for the immediate resignation of Federal Reserve Chairman Jerome Powell. This demand marks an escalation in Trump's public criticism of Powell, whom he believes is maintaining high interest rates without justification. Trump has previously referred to Powell as a “stubborn mule.”

Trump's latest complaint about Powell follows accusations made by Federal Housing Finance Agency (FHFA) Director Bill Pulte. Pulte accused Powell of providing deceptive testimony to the Senate Banking Committee regarding a $2.5 billion renovation plan for the Fed’s offices. Powell had stated that certain luxurious inclusions, such as a V.I.P. dining room and marble table, were part of an older plan and had been abandoned. Pulte, however, asserted that Powell's testimony was misleading and called for his dismissal.

Trump linked to Pulte’s accusations in his social-media post, further fueling his criticism of Powell. Trump, who appointed Powell, has been vocal in his disapproval of the Fed's interest rate policies since the start of his second administration. Powell, during his recent testimony, attributed the Fed's reluctance to lower interest rates to the economic uncertainty caused by Trump's tariffs.

Trump's attacks on Powell have been persistent and varied. He has sent Powell a handwritten letter expressing his dissatisfaction with interest rates and even threatened to appoint a “shadow” Fed chairman to undermine Powell's authority for the remainder of his term. However, the Supreme Court has indicated that Trump does not have the power to remove Powell from office. Powell's term is set to run through May 2026.