Trump Urges Jerome Powell to Resign as US Central Bank Head: What It Means for the Economy

US President Donald Trump has ramped up his criticism of Federal Reserve Chair Jerome Powell, recently demanding that he resign “immediately.” Trump expressed these sentiments in a post on his Truth Social platform, calling Powell “too late” and linking to a news article about a federal housing regulator suggesting that Powell should be investigated.

Trump nominated Powell to lead the Fed during his first term. However, since then, he’s criticized Powell for not cutting interest rates. It remains uncertain whether Trump has the legal authority to remove him from the position. Despite his harsh words, Trump stated earlier this year that he had “no intention of firing him.”

The president believes that lowering interest rates could boost economic growth. Powell remarked that rates might have been cut already if it weren’t for the impact of Trump’s tariff policies. During a meeting in Portugal, Powell confirmed that the administration’s plans to increase tariffs on various countries have influenced their decisions.

The Federal Reserve did not comment on Trump’s latest remarks. Powell has maintained that he won’t step down if asked by the president, noting that the law protects him from being removed without cause. A Supreme Court ruling from 1935 established that heads of independent federal agencies can only be dismissed for specific reasons before the end of their terms.

Recently, Bill Pulte, the director of the Federal Housing Finance Agency, called for a formal investigation into Powell, questioning his political biases and the accuracy of his testimony to the Senate. Pulte’s request emphasizes growing scrutiny over Powell’s conduct, especially after he described reports about high costs at the Fed’s headquarters as “misleading.”

Public opinion on this issue is divided. Some users on social media side with Trump, arguing that lowering rates could help the economy. Others support Powell, claiming that the Fed needs to act independently apart from political pressure.

As debates continue, it’s clear that the relationship between policymakers and the Federal Reserve remains tense. Understanding this dynamic is crucial for navigating the current economic climate. For more insights on this topic, you can read the Federal Reserve’s official statements.

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