US President Donald Trump has called on Federal Reserve Chairman Jerome Powell to resign immediately, posting on Truth Social, “It’s too late – he should resign now!!!” Trump’s remarks follow a news report stating that a US housing regulator demanded an investigation into Powell over alleged misrepresentation of the Federal Reserve headquarters’ renovation costs in Washington.
Trump, who appointed Powell during his first term but later criticised him for not cutting interest rates, has repeatedly clashed with the Fed chair. Although earlier this year Trump said he had no plans to fire Powell, his recent call for resignation marks an escalation in their ongoing conflict. Trump continues to push for interest rate cuts to boost the economy before the upcoming election.
Powell, speaking at a Portugal meeting on Tuesday, stated that the central bank would have cut rates earlier if Trump’s tariff policies had not been introduced, implying that the president’s economic decisions have influenced the Fed’s cautious stance.
The Federal Reserve has declined to comment on Trump’s latest call for Powell’s resignation. Powell has previously asserted he would not resign even if asked, emphasising that under the law, the president cannot remove a Fed chair without serious cause. A 1935 Supreme Court ruling protects board members of independent federal agencies from removal without substantial justification. However, Trump has a history of challenging political norms, having previously removed heads of independent agencies, leading to legal challenges.
Wednesday’s call for an investigation came from Federal Housing Finance Agency chief Bill Polk, who criticised Powell’s Senate testimony as inaccurate and politically biased. Powell had defended the Fed’s renovation expenses, dismissing media reports about alleged luxury purchases as misleading.
The situation highlights deepening tensions between the White House and the Federal Reserve, potentially fuelling further market uncertainty as the administration pushes for aggressive economic stimulus while the central bank remains wary of inflationary risks.
