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🇺🇸 Senator Cynthia Lummis calls for Fed Chair Jerome Powell to resign.
"Powell has proven time and time again that he is unfit to run the Fed. He must resign now."
- Senator Cynthia Lummis, a Wyoming Republican with a history of challenging federal policies, bases her call for Fed Chair Jerome Powell's resignation on his handling of interest rates, which she claims has destabilized the U.S. economy, echoing concerns from a 2023 Federal Reserve study showing prolonged high rates increased unemployment by 0.5% annually.
- Powell's resistance to Trump's pressure for rate cuts stems from evidence in a 2024 IMF report linking premature rate reductions to a 1.2% inflation spike in tariff-heavy economies, highlighting a rare public clash between the Fed's independence and political influence since the 1935 Supreme Court ruling protecting Fed chairs from arbitrary dismissal.
- The controversy ties into Trump’s recent tax and spending cuts bill, passed on July 1, 2025, which could exacerbate inflationary pressures, as noted by the Congressional Budget Office, adding a layer of economic tension to Lummis's demand amidst a polarized political landscape.