The call for Powell’s resignation by Trump unfolds yet another chapter in the ongoing tug-of-war over the Fed’s independence.
At a Glance
- Trump demands Fed Chair Powell’s resignation, asserting dissatisfaction with leadership and policies.
- Allegations surface about misleading Congress on Fed HQ renovations causing cost overruns.
- Critics assert Powell could be removed for cause if Congress was misled.
- Debate intensifies over presidential influence on Federal Reserve independence.
The Trump-Powell Clash
President Donald Trump has turned up the heat again, calling for Federal Reserve Chairman Jerome Powell to step down. Trump declared, “Well, then he should resign immediately. We should get somebody in there that’s going to lower interest rates. It’s OK with me, I think he’s terrible.” Dissatisfaction with Powell’s performance has been inflamed by allegations that he misled Congress regarding the budget escalation of a renovation project at the Fed’s headquarters.
Watch a report: Trump: “Powell should resign immediately.”
This isn’t the first time Trump has been vocal about Powell’s leadership. But the current controversy centers around a renovation project which saw costs jump from $1.9 billion to $2.5 billion. Powell has insisted the reports about extravagant features are “misleading and inaccurate in many, many respects.” However, it’s acknowledged that the cost bump was due to rising material prices.
Presidential Influence and the Federal Reserve
The question of how much sway a president should have over the Federal Reserve’s independent policy-making is a hot topic. Historically, the Fed’s independence has been crucial in ensuring its economic policies are impartial and effective. By calling for Powell’s resignation, Trump throws a spotlight on this delicate balance, suggesting that interest rates should have been cut sooner, potentially swaying economic conditions to his favor.
President Donald Trump said Federal Reserve Chairman Jerome Powell should resign “immediately.” – Donald Trump
Meanwhile, critics argue that Powell’s economic maneuvers, particularly the interest rates, stir market uncertainty. There’s mounting speculation about the potential impact of Fed policy changes on cryptocurrencies. Such changes have historically led to significant market movements.
“🚨 U.S. Housing Director Calls for Federal Investigation Into Fed Chair Powell
🚨 U.S. Housing Director Calls for Federal Investigation Into Fed Chair Powell 🚨
In a stunning move, FHFA Director Bill Pulte — head of the agency overseeing Fannie Mae and Freddie Mac — has officially urged Congress to launch an investigation into Federal Reserve Chair Jerome… pic.twitter.com/xDqJgCszj8
— CoinCraze Central (@CoinCrazeCen) July 3, 2025
The Way Forward for the Federal Reserve
Tensions persist between the Trump administration and Powell, who was ironically nominated by Trump himself. With Powell’s term as chair not ending until May 2026, Trump’s rhetoric nonetheless raises questions about future leadership. The administration is rumored to have potential successors to Powell, contemplating a shift towards someone favoring more aggressive rate cuts.
Trump has repeatedly criticised Powell for the Fed’s policy choices, calling him a “stubborn mule and a stupid person” for refusing to cut rates. – Donald Trump
Even as Trump pushes for a Congressional probe into Powell, alleging that interest rates were manipulated ahead of the last presidential election, Powell maintains his integrity, dismissing accusations of deception. A decision on Powell’s fate could further delineate the boundaries of presidential influence over economic policy.
