President Donald Trump reiterated his call for Federal Reserve Chair Jerome Powell to resign, after he allegedly gave false testimony to Congress.
For months now, the two have been at odds over the reduction of interest rates, and Powell’s latest appearance before Congress has only escalated their feud.
In a Truth Social post on Thursday, Trump, referring to Powell, said, “Too Late,” should resign immediately!!! Fed Chair Should Be Investigated by Congress, FHFA Head Says.”
Trump and Powell have been disagreeing on interest rate cuts
In an X post on Wednesday, Bill Plute, the director of the Federal Housing Finance Agency, accused Powell of “political bias” and “deceptive testimony” on the renovations at the Federal Reserve headquarters in Washington, DC, asking Congress to investigate him. After which, Trump demanded that the Fed Chair step down.
Just last month, Trump said he would like to replace Powell with someone more inclined to lower interest rates.
He told reporters, “I’m going to put somebody that wants to cut rates. There are a lot of them out there.” Even then, he asked the Fed chair to resign and described him as “a stubborn mule and a stupid person” for disapproving of rate cuts.
Additionally, he argued that Powell’s stance only stands in the way of economic growth, and critics are overstating their inflation concerns.
Typically, lower interest rates tend to boost economic growth. Though they may sometimes lead to an inflation rise, something central banks try to avoid. Some experts have warned, however, that inflation is bound to rise with Trump’s tariffs.
On Tuesday, Powell, at the European Central Bank Forum in Portugal, said the Fed is holding off on rate cuts while it evaluates the impact of Trump’s tariffs. He claimed they were taking their time to examine the situation.
By law, the president can only dismiss the Fed chair “for cause,” broadly seen as applying to misconduct rather than disagreements over monetary policy.
The Supreme Court even recently ruled against Trump’s push to fire officials at independent federal agencies, a move most believe the President advocated to target Powell.
Despite the ruling, Trump still plans to replace Powell, having said he has about two to three choices who could take over from him. He recently wrote a letter asking Powell again to lower the benchmark interest rate—currently at 4.25% to 4.5%—by “a lot.”
According to media reports, the Fed’s headquarters project has incurred escalating costs and included several luxury features. In the Senate hearing last week, however, Powell pushed back on those claims, describing the reports as “misleading and inaccurate in many, many respects.”
He claimed that the “inflammatory” details reported by the media were either not part of the current plan or simply incorrect. Nonetheless, he said they are open to discussing the project’s expenses, adding that their renovation plans have changed over time.
The House Financial Services Committee Chair, French Hill, and the Fed spokesperson have not spoken on the matter. However, House Judiciary Committee Chair Jim Jordan noted that while they have yet to address the matter directly, they intend to review it.
