Trump Presses for Powell's Resignation Over Policy, Spending Concerns

U.S. President Donald Trump has escalated his public criticism of Federal Reserve Chair Jerome Powell, repeatedly urging his resignation and using the phrase “put out to pasture” in multiple statements between July 22 and July 30, 2025. The remarks followed the release of a disappointing jobs report and came in the wake of the Fed’s earlier decision to cut interest rates, which Trump has blamed for undermining economic momentum [1]. Trump has long advocated for lower interest rates as a means to stimulate growth and support his broader policy objectives, and Powell’s leadership has increasingly come under scrutiny [2].

The controversy has been further fueled by the Fed’s ongoing $2.5 billion renovation of its Washington, D.C. headquarters, a project that has drawn public attention due to its rising costs and perceived unnecessary expenditures. During a site visit on July 24, Trump reportedly softened his threats to remove Powell but emphasized what he described as wasteful spending, including the use of plywood for protection during construction [3]. Fed officials have defended the renovation, noting that it includes security upgrades, accessibility improvements, and environmental enhancements, with many costs beyond their control.

While the Supreme Court has ruled that the president cannot remove Powell solely over policy disagreements, Trump has suggested that evidence of malfeasance or neglect could justify his dismissal [4]. With the 2026 election approaching, the pressure on Powell is likely to persist, particularly if the Fed does not pursue additional rate cuts. Trump has also urged the Federal Reserve board to take control away from Powell and has criticized the central bank’s independence, a principle enshrined in U.S. law. Although Trump has no constitutional authority to replace Powell before his term ends in May 2026, he has made it clear that he would not reappoint him if given the opportunity [6].

These developments highlight the deepening tension between the executive branch and the independent Federal Reserve. Trump’s repeated attacks underscore a fragile relationship that could lead to further political conflict in the months ahead, particularly as economic conditions remain a focal point of national concern.

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[1] Trump: Powell should be put out to pasture (https://breakingthenews.net/Article/Trump:-Powell-shoud-be-put-out-to-pasture/64576813)

[2] Trump says Powell should be put "out to pasture" (https://www.streetinsider.com/Politics/Trump+says+Powell+should+be+put+%22out+to+pasture%22/25136086.html)

[3] The Fed's $2.5 billion renovation draws scrutiny (https://www.kcbd.com/2025/08/01/trump-pushes-start-date-tariffs-back-aug-7/)

[4] Trump Blames Bad Jobs Report on Biden Appointee 'Who ... (https://www.mediaite.com/politics/trump/trump-blames-bad-jobs-report-on-biden-appointee-who-faked-the-job-numbers/)

[5] Can Trump fire Powell? How the President can and can't ... (https://www.tbsnews.net/features/panorama/can-trump-fire-powell-how-president-can-and-cant-sway-fed-1119216)

[6] Trump calls on Fed board to wrest full control of central ... (https://www.fortmorgantimes.com/2025/08/01/trump-federal-reserve-board-powell/)