Trump demands Fed Chairman Jerome Powell's immediate resignation if the allegations of him misleading Congress are true.
Trump's remarks were made at a Cabinet meeting, stating that he wants to choose someone new who will prioritize lowering interest rates, rather than maintaining the current high levels.
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Trump criticizes Powell and urges an investigation into false testimony related to the Fed headquarters renovation project.
Commissioner Bill Pulte also accused Powell of misleading and called for a deeper investigation.
Scott Bessent expressed uncertainty about replacing Powell despite being a potential candidate.
Trump demands Powell's resignation if proven to mislead Congress?
Trump stated in the U.S. Cabinet meeting on July 8 that if Powell is proven to have misreported to Congress, he should resign immediately. This is the strongest Trump has opposed the Fed Chairman since he took office.
He emphasized: "We need a leader to lower interest rates, not someone who continues to maintain high borrowing costs." Bloomberg noted that Trump has prepared a list of 3-4 candidates to replace Powell when his term ends in May 2026.
"If there is evidence that Powell did wrong, he does not deserve to hold the position and must leave immediately."
Donald Trump, President of the United States, July 2025, White House Press Room
Why is the Fed headquarters renovation project controversial?
The campaign to criticize Powell was strengthened when Bill Pulte – Director of the Federal Housing Finance Agency – accused Powell's testimony about the costly and ostentatious renovation project at the Central Bank headquarters of being "misleading and distorted."
Pulte proposed an investigation to clarify the accuracy and transparency of this process. Trump then vigorously continued to demand Powell's resignation and increased public pressure on social media.
"Powell's testimony about the renovation project is completely non-transparent. We need to examine it closely to protect the public's trust."
Bill Pulte, Director of FHFA, 2025
How has Trump reacted to the Fed's interest rate policy?
He has previously used strong language to criticize Powell as a "bad choice," arguing that the Fed is being influenced by "a stubborn, ignorant person" maintaining high interest rate policies.
Despite continuously wanting to cut interest rates to boost economic growth, the Fed has kept the interest rates unchanged at 4.25% to 4.5% since last December due to concerns about inflation and fluctuations from tariff policies. Powell emphasized caution, avoiding hasty changes that could have negative impacts.
Who could replace Jerome Powell after his term ends?
Many speculations about successors have emerged, including Scott Bessent – the current U.S. Secretary of the Treasury. However, Bessent recently stated that he is satisfied with the Secretary position and is uncertain about accepting the Fed Chairman role.
Bessent was formerly an investment fund manager, playing a key role in the Trump administration's international economic strategy, such as addressing trade tensions with China.
Scott Bessent's statement about the possibility of being Fed Chairman
In an interview with FOX Business, Bessent said: "I am doing the job that I believe is best in Washington. I feel honored to work with the President and the Cabinet." However, he did not rule out taking on a position that the President sees fit in the future.
Overview of the tension between Trump and Powell
The confrontation between Trump and Powell has gone beyond mere criticism to calling for an investigation into the renovation project of the Fed headquarters as well as the controversial interest rate policy. With Powell's term ending in 2026, Trump is proactively reshaping the future of the U.S. Central Bank.
Frequently asked questions
Why does Trump want Powell to resign? Trump demands Powell's resignation if proven to mislead Congress about the Fed headquarters renovation project. Who accused Powell of misleading about the Fed renovation project? Bill Pulte, Director of the Federal Housing Finance Agency, accused Powell's testimony of being distorted and called for an investigation. When could Powell be replaced? Powell's current term ends in May 2026, at which point a replacement may be found. Has Scott Bessent confirmed taking the position of Fed Chairman? Bessent is uncertain and currently prioritizes the role of Secretary of the Treasury. Why does the Fed keep interest rates unchanged? Powell stated that inflation and fluctuations from tariff policies forced the Fed to cautiously maintain interest rates.
Source: https://tintucbitcoin.com/bitcoin-lao-doc-trump-doi-powell-tu-chuc/
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