đč Trump renews call for Powell to resign over alleged false testimony before Congress
đč Clash over interest rate cuts escalates into a public dispute
đč Costly Fed headquarters renovation draws scrutiny from lawmakers
Former President Donald Trump has once again demanded the immediate resignation of Federal Reserve Chair Jerome Powell, claiming Powell misled Congress during testimony related to the expensive renovation of the Fedâs Washington, D.C. headquarters.
The call follows a post by Federal Housing Finance Agency (FHFA) Director Bill Plute, who accused Powell of âpolitical biasâ and âdeceptive testimony,â urging lawmakers to launch an investigation. Trump echoed the demand on Truth Social, stating: âItâs too late â he must RESIGN immediately!â
Interest Rate Rift Widens Between Trump and Powell
Tensions between Trump and Powell have been building for months over interest rate policy. Powell has remained cautious about cutting rates due to inflation concerns, while Trump argues that higher rates are stifling economic growth.
âIf Iâm elected, Iâll appoint someone who wants to cut rates,â Trump recently said. âThere are plenty of candidates out there.â He went on to call Powell a âstubborn muleâ and an âunfitâ leader for refusing to lower rates.
While lower interest rates can fuel economic growth, they also carry the risk of inflation â especially in light of Trumpâs proposed tariffs, which many analysts warn could increase prices further. Powell acknowledged this at a European Central Bank forum in Portugal, saying the Fed was taking its time to assess the impact of those tariffs before acting.
Limited Presidential Authority to Remove Powell
By law, the U.S. president can only remove the Fed chair âfor cause,â which generally refers to misconduct â not disagreements over monetary policy. In fact, the Supreme Court recently ruled against Trumpâs broader efforts to fire independent agency officials, which could affect any attempt to oust Powell.
Despite these legal limitations, Trump has indicated that he still plans to replace Powell and has two to three candidates in mind. He also recently sent a letter urging Powell to âsignificantlyâ lower the Fedâs benchmark interest rate â currently between 4.25% and 4.5%.
Fed Headquarters Renovation Under Fire
Adding fuel to the controversy are media reports about escalating costs related to the Fedâs headquarters renovation project. Reports have highlighted supposed luxury features, triggering public outcry.
During a Senate hearing last week, Powell pushed back, calling the reports âmisleading and inaccurate in many respects.â He stated that many of the âoutrageousâ details cited by the media were either not part of the current plan or outright false. He also noted that the renovation plans have changed over time and remain open for review.
While the House Financial Services Committee has not officially commented, Judiciary Committee Chair Jim Jordan suggested that lawmakers intend to investigate the matter further.
#TRUMP , #JeromePowell , #USPolitics , #FederalReserve , #Fed
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