US President Donald Trump has called for Jerome Powell, the chair of the Federal Reserve, to resign immediately. Trump made this demand on his Truth Social platform, stating that Powell should step down. Alongside this, Trump also shared a link to a news article about a US federal housing regulator urging for Powell to be investigated concerning his testimony on renovations to the central bank’s Washington headquarters. Although Trump was the one who nominated Powell as Fed chair during his first term, it remains unclear whether the president possesses the authority to remove him from this position.
Despite Trump’s ongoing criticism of Powell, the president previously stated that he has no intention of firing him. Trump wants the Federal Reserve to lower interest rates in order to boost economic growth. However, Powell mentioned that the impact of Trump’s tariff policies has hindered the potential for cutting rates this year. In response to a question during a meeting of central bankers in Portugal, Powell agreed with the statement that US rates would have been cut again in 2021 if the administration had not planned to sharply increase tariffs worldwide.
When contacted by the BBC, the US Federal Reserve declined to comment on Trump’s remarks. Prior to Trump’s return to the White House at the start of the year, Powell expressed that he would not step down if the president requested him to do so. He also mentioned that it is not legally permissible for the White House to force him out. According to a 1935 US Supreme Court ruling, board members of independent federal agencies like the Federal Reserve can only be removed before their terms expire if there is a valid cause.
However, Trump has demonstrated a pattern of challenging political norms, including the termination of independent regulators. Actions like these have been subject to legal challenges. On Wednesday, Federal Housing Finance Agency director Bill Pulte, who has previously criticized Powell, demanded an investigation into Powell’s political leanings and alleged deceptive Senate testimony. Pulte believes that such actions are grounds for removal from his position. Last week, Powell testified before the Senate, disputing reports of high costs and lavish features at the Fed’s headquarters, describing them as “misleading and inaccurate.”
Source: https://www.bbc.com/news/articles/crmv4ldv923o
