Trump Demands Fed Chair Jerome Powell Resign Immediately Amid Escalating Criticism
Former President Donald Trump has reignited his attacks on Federal Reserve Chair Jerome Powell, this time calling for his immediate resignation. In a fiery post on his Truth Social platform on Wednesday, Trump declared, “‘Too Late’ should resign immediately!!!”—using his trademark nickname for Powell.
The post came alongside a link to a Bloomberg article reporting that Federal Housing Finance Agency (FHFA) Director Bill Pulte had called for a congressional investigation into Powell’s conduct. Specifically, Pulte cited concerns over Powell’s allegedly misleading testimony to the Senate regarding costly renovations at the Federal Reserve’s Washington, D.C. headquarters.
Trump’s Growing Frustration with Powell
Although Trump appointed Powell during his first term as president, the two have frequently clashed over monetary policy. Trump has long urged the Fed to aggressively cut interest rates to stimulate economic growth—a position that has intensified during his return to the national spotlight.
Earlier this year, Trump claimed he had “no intention” of firing Powell, but his tone has shifted dramatically in recent weeks. This latest demand for resignation reflects Trump’s deepening frustration with Powell’s perceived resistance to rate cuts.
Adding fuel to the fire, Powell recently indicated that the Fed might have lowered interest rates sooner had it not been for the economic uncertainty triggered by Trump’s own tariff policies. At a central bankers’ forum in Portugal, Powell was asked whether U.S. interest rates would likely have been cut again this year without the administration’s trade actions. He responded, “I think that’s right.”
Can Trump Actually Remove Powell?
Despite Trump’s pressure, Powell has stated clearly that he will not voluntarily step down if asked. Speaking earlier this year, he emphasized that the law does not allow the president to remove a Federal Reserve chair without just cause. Powell’s current term runs through May 2026, following his renomination by President Joe Biden.
According to a landmark 1935 Supreme Court decision, leaders of independent federal agencies like the Fed can only be dismissed “for cause.” That legal protection was designed to ensure central bank independence from political interference—a principle that Trump has often challenged during his political career.
Trump has previously fired other independent officials in controversial moves that were later contested in court. Whether he would attempt to forcibly remove Powell, should he return to the White House in 2025, remains an open question.
Housing Regulator Joins the Fight
In a separate but related development, FHFA Director Bill Pulte has added his voice to the chorus of Powell critics. Pulte, a vocal Trump ally, took to X (formerly Twitter) on Wednesday to call for a congressional probe into Powell’s Senate testimony and overall conduct.
“I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed ‘for cause’,” Pulte wrote.
His remarks refer to a contentious Senate hearing last week in which Powell defended the Fed’s controversial headquarters renovation plans, pushing back on reports suggesting excessive spending. Powell called the reports “misleading and inaccurate in many, many respects.”
No Comment from the Fed
The U.S. Federal Reserve declined to respond to Trump’s latest comments when contacted by the BBC. As tensions continue to rise, Powell’s independence—and the Fed’s broader role as a politically neutral institution—is once again under intense public and political scrutiny.
Whether Trump’s pressure campaign has any lasting effect remains to be seen, but one thing is clear: the battle over monetary policy is becoming yet another high-stakes political fight as the country looks ahead to 2025.
