Trump again calls for immediate resignation of Powell
Trump demands Powell’s immediate resignation over alleged false testimony
President Donald Trump has renewed his demand for Federal Reserve Chair Jerome Powell to resign, following accusations that Powell provided false testimony to Congress.
Trump, using his Truth Social platform on Thursday, declared, “Too Late,” should resign immediately!!! Fed Chair Should Be Investigated by Congress, FHFA Head Says”, reports Cryptopolitan.
The president’s frustration with Powell has been simmering for months, particularly over the Fed’s persistent refusal to cut interest rates, a policy stance Trump believes is stifling economic growth. The feud reached new heights after Bill Plute, the director of the Federal Housing Finance Agency (FHFA), accused Powell of “political bias” and “deceptive testimony” regarding the Federal Reserve’s controversial headquarters renovation project.
Trump intensifies pressure for rate cuts
The ongoing dispute between Trump and Powell has become a defining feature of Trump’s economic agenda since his 2024 re-election. Trump has repeatedly stated his intention to replace Powell with a more rate-cut-friendly candidate, insisting that “there are a lot of them out there” who would support lower borrowing costs. Trump has not softened his rhetoric, having previously labeled Powell as “a stubborn mule and a stupid person.”
Trump and his allies argue that Powell’s caution on rate cuts hinders economic expansion and that concerns about inflation are overstated. Despite warnings from some economists that Trump’s aggressive tariff policies could drive inflation higher, the president remains focused on loosening monetary policy to accelerate growth.
Powell defends renovation as investigation looms
At the center of the controversy is the Federal Reserve’s costly headquarters renovation in Washington, D.C., which has drawn scrutiny from both lawmakers and media outlets. Reports suggested extravagant spending and luxury features, sparking public outrage. In response, Powell defended the project during a Senate hearing, calling the media reports “misleading and inaccurate in many, many respects.” He clarified that many of the so-called luxury items were not part of the current renovation plans and indicated that the Fed is open to reviewing project costs.
However, the issue may soon face deeper congressional scrutiny, as House Judiciary Committee Chair Jim Jordan signaled a potential investigation into the renovation’s budget and transparency. Despite legal limitations on dismissing the Fed Chair without misconduct, Trump appears determined to pursue Powell’s replacement, having identified “two to three” potential successors who align with his monetary vision.
Recently we wrote that president Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, making it clear at the NATO summit in The Hague that he plans to replace Powell with someone committed to aggressively cutting interest rates.
