US President Donald Trump has repeated his call for Federal Reserve Chair Jerome Powell to step down, saying “Too Late” and demanding resignation “immediately”. This latest attack on the top central banker comes amid disagreements over interest rates and raises concerns about the independence of the US central bank.
Trump’s criticism of Powell stems from the central banker’s cautious stance on lowering interest rates, which Trump believes is holding back economic growth. However, rate cuts can also increase inflation, a concern that Trump’s sweeping tariffs are likely to exacerbate. The Fed chair has faced pressure from Trump and his administration over his testimony about renovations at the Federal Reserve headquarters.
The US president has repeatedly criticized Powell for not backing faster rate cuts, arguing that his stance is holding back economic growth. However, under US federal law, the president can only fire the Fed chair “for cause”, a provision widely interpreted to mean specific misconduct, not policy decisions. Trump’s criticism of Powell is unlikely to lead to his immediate resignation.
Trump has repeatedly called on Powell to step down amid disagreements over interest rates and has demanded that he lower the benchmark interest rate by “a lot”. However, Powell’s term does not expire until May 2026, giving him time to weather the current storm.
Source: https://www.aljazeera.com/economy/2025/7/3/trump-says-powell-should-resign-immediately-in-latest-attack-on-fed-chair