U.S. President Donald Trump has called for Federal Reserve Chairman Jerome Powell to resign if the allegations against him are true. Powell is accused of misleading lawmakers about the expensive renovation costs at the Fed headquarters and not lowering interest rates in recent months.

Trump Urges Jerome Powell to Resign as Fed Chair

On Tuesday, during a cabinet meeting, President Trump stated that Jerome Powell's reluctance to cut interest rates has cost the country billions of dollars, urging him to resign immediately. The president is currently reviewing a shortlist of potential candidates to replace the Fed chair.

Furthermore, Trump accused the Federal Reserve of bias in its policy decisions and criticized the agency for maintaining interest rates. In response, Powell blamed Trump's tariffs as the cause of inflation concerns.

The president added, "I think he's terrible."

Congress Investigates Powell's Allegations

Jerome Powell is accused of providing false testimony to members of the Senate Banking Committee regarding the $2.5 billion renovation project of the Federal Reserve headquarters.

If the allegations are true that he misled Congress about renovation costs, "then he should resign immediately," Trump said. "We should put someone in there to lower interest rates."

The allegations have become more credible after FHFA Director Bill Pulte and Senator Cynthia Lummis stated that the Fed lied under oath and misled authorities. As a result, Powell may face a congressional investigation in July.

Shortlist of Fed Candidates

Trump stated that he has two or three suitable candidates for the position, each of whom aligns with his economic vision.

  • Treasury Secretary Scott Bessent: Known for his role in easing U.S.-China tensions, Bessent is considered a reliable figure in the cabinet. He has stated that he is willing to serve wherever the president deems appropriate.

  • Kevin Hassett: Currently serving as the Director of the White House Council of Economic Advisers, Hassett is another candidate. He has consistently supported Trump's economic policies on trade and taxes.

  • Michelle Bowman: Vice Chair for Supervision of the Federal Reserve, Bowman would become the second woman to lead the Fed after Janet Yellen if confirmed by Congress.

In addition to these three individuals, Trump is also considering veteran economists Kevin Warsh and Christopher Waller, both of whom have advised former U.S. presidents.