Trump calls for Federal Reserve chair Jerome Powell’s immediate resignation

WASHINGTON: US President Donald Trump has called for Federal Reserve Chair Jerome Powell to resign immediately, escalating his ongoing criticism of the Fed chief. Trump posted on his Truth Social platform, “‘Too Late’ should resign immediately!!!” and included a link to a news article about a US federal housing regulator urging an investigation into Mr. Powell regarding his testimony about renovations to the central bank’s Washington headquarters.

Trump, who nominated Powell to lead the Fed during his first term, has repeatedly criticized him for not lowering interest rates, although it remains unclear whether the president has the legal authority to dismiss Powell from his position. Despite these criticisms, Trump previously stated earlier this year that he had no plans to fire Powell.

Trump is pushing for the Federal Reserve to cut interest rates to stimulate economic growth. In response, Mr. Powell mentioned on Tuesday that the Fed would have already reduced rates if not for the impact of Trump’s tariffs. When asked during a gathering of global central bankers in Portugal whether US interest rates would have been lowered again this year without the administration’s tariff increases, Powell responded, “I think that’s right.”

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The Federal Reserve declined to comment on Trump’s remarks when approached by the BBC. Powell was reappointed by then-President Joe Biden, and his current term is scheduled to conclude in May 2026. Earlier this year, Powell stated he would not resign if asked by the president, emphasizing that it is “not permitted under law” for the White House to force him out.

According to a 1935 US Supreme Court ruling, members of independent federal agencies like the Fed can only be removed before their terms end “for cause.” Nonetheless, Trump has challenged political norms by firing some regulators, a practice often contested in court.

On Wednesday, Bill Pulte, director of the Federal Housing Finance Agency and a critic of Powell, called for an investigation into Powell’s conduct. Pulte posted on X (formerly Twitter), requesting Congress to probe Powell’s alleged political bias and deceptive Senate testimony, which he claims could justify removal “for cause.” Last week, Powell defended himself against reports of high costs and costly features at the Fed’s headquarters, dismissing them as “misleading and inaccurate in many, many respects.”