The US president has repeatedly called on the top central banker to step down amid disagreement over interest rates.
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US President Donald Trump has reiterated his call for Federal Reserve Chair Jerome Powell to resign, amidst ongoing tension regarding interest rate policies, which has raised concerns about the central bank’s independence.
Trump made the latest demand for Powell to “resign immediately” on Wednesday, following his administration’s top housing regulator urging Congress to investigate the central banker.
Bill Pulte, director of the Federal Housing Finance Agency, suggested Powell should be investigated for his alleged “political bias” and “deceptive testimony” concerning renovations at the Federal Reserve headquarters in Washington, DC.
Responding to Pulte’s comments, Trump stated in a Truth Social post that “Too Late” – a nickname critical of Powell for not lowering rates quickly enough – should resign.
Days earlier, Trump had sent Powell a letter requesting a reduction in the benchmark interest rate, urging a significant decrease from its current range of 4.25 percent to 4.5 percent.
Trump has frequently criticized Powell for not supporting faster rate cuts, arguing that the central banker’s cautiousness hinders economic growth and overestimates inflation concerns.
Lower interest rates decrease the cost of borrowing for businesses and consumers, thereby stimulating economic growth. However, rate cuts can also increase inflation, which central banks aim to keep at bay, and Trump’s tariffs are expected to raise prices.
On Tuesday, Powell addressed a panel discussion at the European Central Bank Forum in Portugal, explaining that the Fed had adopted a wait-and-see approach to rate cuts in response to Trump’s tariffs, many of which remain pending ahead of a July 9 deadline.
“We went on hold when we saw the size of the tariffs, and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs,” Powell stated.
“We didn’t overreact. In fact, we didn’t react at all; we’re simply taking some time.”
Trump has continuously pressed for Powell’s resignation or removal since taking office in January, repeating demands for him to step down or be dismissed.
Last week, Trump commented that he would “love” for Powell to step down “if he wanted to,” and in April said that Powell’s “termination cannot come fast enough,” before retracting his threat after a drop in stocks and the US dollar.
Under US law, the president can only fire the Fed chair “for cause,” indicating specific misconduct rather than policy decisions.
