US President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell by demanding his immediate resignation. Trump’s latest call marks an escalation in his ongoing attacks against Powell, reflecting his increasing frustration with the central bank’s leadership.
President Donald Trump intensified his attacks on Federal Reserve Chair Jerome Powell on Tuesday, demanding his immediate resignation in a post on Truth Social, where he referred to him dismissively as “Too Late.”
Trump’s post also included a link to a news report calling for an investigation into Powell’s congressional testimony regarding renovation costs at the Fed’s Washington headquarters.
Although Trump had originally nominated Powell during his first term in office, their relationship has soured over time, with the president frequently criticising him for not reducing interest rates.
It remains uncertain whether Trump has the legal authority to remove Powell from his position, despite his ongoing public condemnations. Earlier this year, Trump stated he had “no intention of firing” the Fed chair, even though he has maintained pressure on the central bank to slash rates to stimulate economic growth.
Powell, however, noted on Tuesday that the Federal Reserve would have already cut rates if not for the economic repercussions of Trump’s own tariff policies.
When asked during a meeting of central bankers in Portugal whether US rates would have been cut again this year if the administration had not announced its plan to sharply increase tariffs on countries around the world Mr Powell responded, “I think that’s right.”
The US Federal Reserve declined to comment about Trump’s remarks when contacted by the BBC.
Mr Powell was renominated to the position by then-President Joe Biden and his current term is set to end in May 2026.
Ahead of Trump’s return to power at the start of this year, Mr Powell said he would not step down if the president asked him to and that it is “not permitted under law” for the White House to force him out.
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Legal experts have noted that, under a landmark US Supreme Court ruling from 1935, members of independent federal agencies such as the Federal Reserve can only be removed before their term ends if there is just cause.
However, observers pointed out that President Trump has often tested the limits of political norms, including instances where he dismissed independent regulators, actions that were subsequently challenged in court.
On Wednesday, it was reported that Bill Pulte, director of the Federal Housing Finance Agency and a longstanding critic of Jerome Powell, called on Congress to investigate the Fed chair. Pulte alleged that Powell demonstrated political bias and claimed his recent Senate testimony was deceptive enough to justify his removal for cause.
Reports indicated that, during his Senate appearance last week, Powell defended himself by stating that media coverage on rising renovation costs and supposed extravagant features at the Federal Reserve headquarters had been “misleading and inaccurate in many, many respects.”