In an unexpected display of political friction, former President Donald Trump has publicly demanded that Jerome Powell, the chair of the Federal Reserve, resign "immediately." This latest call for Powell's exit represents a significant escalation in Trump's ongoing critique of the Fed's monetary policy, particularly regarding interest rates. In a post on the Truth Social platform, Trump amplified his claims with a link to a news article related to a demand for Powell's investigation stemming from concerns about his Senate testimony concerning renovations at the Fed's headquarters.
Trump Demands Immediate Resignation of Federal Reserve Chair Jerome Powell
Trump Demands Immediate Resignation of Federal Reserve Chair Jerome Powell
In a bold move on social media, Trump intensifies pressure on the Federal Reserve's leadership amid ongoing economic concerns.
Over his presidency, Trump nominated Powell for the Fed chair position but has since taken issue with his reluctance to lower interest rates, which Trump argues is necessary to stimulate the economy. Despite his sharp remarks, the political authority to remove Powell remains ambiguous, and earlier this year, Trump indicated he had "no intention of firing him." In response, Powell stated that a rate cut would have occurred earlier if not for the impact of Trump's own trade policies, which have complicated the economic landscape.
The Federal Reserve's representatives have not commented on Trump's demands. According to legal guidelines stemming from a 1935 Supreme Court ruling, board members can only be removed "for cause," meaning Trump’s demands could face significant legal hurdles. Notably, Trump has a track record of challenging norms by dismissing independent regulators, sparking court debates over his authority.
Adding fuel to the fire, Bill Pulte, director of the Federal Housing Finance Agency, has suggested Congress investigate Powell, claiming political bias and inaccuracies in his testimony warrant potential removal. Powell recently defended his Senate statements, labeling reports of his office's expenses as "misleading."
As Trump's calls for Powell's resignation unfold alongside fresh investigations, observers are keenly watching how this interplay will influence future Federal Reserve moves and broader economic policies.
The Federal Reserve's representatives have not commented on Trump's demands. According to legal guidelines stemming from a 1935 Supreme Court ruling, board members can only be removed "for cause," meaning Trump’s demands could face significant legal hurdles. Notably, Trump has a track record of challenging norms by dismissing independent regulators, sparking court debates over his authority.
Adding fuel to the fire, Bill Pulte, director of the Federal Housing Finance Agency, has suggested Congress investigate Powell, claiming political bias and inaccuracies in his testimony warrant potential removal. Powell recently defended his Senate statements, labeling reports of his office's expenses as "misleading."
As Trump's calls for Powell's resignation unfold alongside fresh investigations, observers are keenly watching how this interplay will influence future Federal Reserve moves and broader economic policies.
