President Trump has once again publicly demanded Federal Reserve Chair Jerome Powell’s resignation, posting a blunt “Too Late’ should resign immediately!!!” on Truth Social his go-to platform for airing grievances. To underscore his point, he shared a link to a story about a federal housing regulator calling for Powell to be investigated over his congressional testimony regarding the central bank’s Washington headquarters renovations.
It’s worth recalling that Trump himself nominated Powell as Fed Chair during his first term. Yet, he’s consistently criticized Powell for not cutting interest rates more aggressively, arguing that lower rates would help strengthen economic growth. Questions remain over whether a president even has the authority to directly remove a Fed chair a role designed to be independent. For what it’s worth, earlier this year, Trump stated he had “no intention of firing him,” despite the ongoing public pressure.
Powell, for his part, made it clear he’s not planning to resign if asked by the White House, pointing out that the law protects his position unless there is cause for removal. This independence is backed by a 1935 Supreme Court decision preventing presidents from firing board members of agencies like the Fed without cause. Trump’s disregard for such political norms he’s fired independent regulators before, sometimes sparking legal battles raises questions about how this standoff might unfold.
Recently, the director of the Federal Housing Finance Agency, Bill Pulte, who has also been openly critical of Powell, called on Congress to investigate Powell for alleged political bias and “deceptive” testimony before the Senate, arguing this could be enough for removal. Powell, when questioned by the Senate about reports of excessive spending on the Fed’s headquarters, dismissed the allegations as “misleading and inaccurate in many, many respects.”
Meanwhile, the Federal Reserve declined to comment on Trump’s latest remarks. The situation underscores ongoing tension between the administration and the traditionally independent central bank.