Amid heightened calls for an investigation into Jerome Powell’s testimony before the Senate, US President Donald Trump has asked the Fed Chair to resign. The US President cites his failure to cut interest rates in recent months while comparing his antecedents under the Biden administration.
Trump Urges Jerome Powell To Resign As Fed Chair
Trump has reiterated calls for Jerome Powell to step down from his role as Fed Chair, branding him as “terrible” and unfit for the job. The US President reaffirmed his stance in a press conference when quizzed over the looming Congressional investigation into the Fed Chair.
Trump urged Powell to resign immediately, citing his refusal to cut interest rates despite improving inflation metrics. Furthermore, the US president is accusing Powell of exhibiting bias in his handling of the Federal Reserve’s policy. Powell has kept interest rates unchanged, adopting a cautious approach and blaming Trump’s tariffs for stoking inflation concerns.
For starters, Trump notes that Powell was liberal in cutting interest rates during the Biden administration. In the lead up to the 2024 Presidential election, Jerome Powell cut interest rates multiple times but has adopted a hard stance toward rate cuts.
Frustrated by Powell’s stance, Trump has fired several salvos at the Fed Chair, tagging him “terrible” and “too slow” for the job. A previous meeting between the duo yielded no positive outcome, with Trump weighing his options for a potential replacement for Jerome Powell.
Powell Faces Congressional Investigation
Jerome Powell may become the subject of a congressional investigation following his Senate testimony in July. The Fed Chair is accused of giving misleading testimony to members of the Senate Banking Committee over a $2.5 billion renovation of the Federal Reserve headquarters.
FHFA Director Bill Pulte and Senator Cynthia Lummis argue that the Fed Chair lied under oath, denying the extravagant spending of resources on the renovation. Since the calls for Powell’s investigation by the FHFA Director, odds for a July Fed rate cut have spiked by 23%.
Several Federal Reserve governors have hinted at an incoming rate cut, but it remains unclear if Powell will bow to political pressure from Trump.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
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