US President Donald Trump has called for Federal Reserve Chair Jerome Powell to resign immediately, escalating his attacks on the central bank leader. Trump posted on his Truth Social platform, saying “‘Too Late’ should resign immediately!!!”. The president nominated Powell as Fed chair during his first term and has repeatedly criticized him for not cutting interest rates.
Powell recently testified before the Senate that reports about renovations to the Fed’s headquarters were “misleading and inaccurate in many respects.” Federal Housing Finance Agency Director Bill Pulte, who has previously criticized Powell, now calls for an investigation into Powell’s political bias and testimony. However, it is unclear whether Trump has the authority to remove Powell from the post.
Powell’s current term ends in May 2026, and he was renominated by President Joe Biden. Ahead of Trump’s return to power, Powell stated that he would not step down if asked but emphasized that his removal would be “not permitted under law”. A landmark US Supreme Court ruling in 1935 established that board members can only be forced out before their terms expire for cause.
Trump has challenged political norms, including firing independent regulators. Federal agencies like the Fed have a tradition of independence, and Powell’s tenure is subject to congressional oversight, not presidential authority alone.
Source: https://www.bbc.com/news/articles/crmv4ldv923o