US President Donald Trump has called for Federal Reserve Chair Jerome Powell to resign if the allegations against him prove to be true.
Powell has been accused of misleading lawmakers about the cost of expensive renovations at the Fed’s headquarters and of failing to cut interest rates in recent months.
Trump Urges Jerome Powell to Resign As Fed’s Chair
On Tuesday, during a cabinet meeting, President Trump said that Jerome Powell’s reluctance to cut interest rates has cost the country billions of dollars, urging him to resign immediately.
Trump nominated Mr Powell to be the Fed chair during his first term. Since then, he has repeatedly criticised him for not cutting interest rates but it is unclear whether the president has the authority to remove him from the post.
The president is now considering a shortlist of potential replacements for the Fed Chair.
Moreover, Trump accused the Federal Reserve of bias in its policy decisions and criticized it for keeping interest rates unchanged. In response, Powell has blamed Trump’s tariffs for fueling inflation concerns.
The president added– “I think he’s terrible.”
Congress Investigates Powell’s Allegations
Jerome Powell has been accused of giving misleading testimony to members of the Senate Banking Committee regarding a $2.5 billion renovation of the Federal Reserve’s headquarters.
If the allegations are proven true that he deceived Congress about the renovation costs, “then he should resign immediately,” Trump said. “We should get somebody in there who’s going to lower interest rates.”
In a subsequent social media post, Trump accused the Fed chair of “whining like a baby about non-existent Inflation for months, and refusing to do the right thing.”
The allegations gained further credibility after FHFA Director Bill Pulte and Senator Cynthia Lummis claimed that the Fed lied under oath and misled authorities. As a result, Powell may face a congressional investigation in July.
Trump’s Shortlist Of Fed Contenders
Trump said he has two or three contenders suitable for the role, each aligned with his economic vision.
Treasury Secretary Scott Bessent: Known for his role in easing U.S.–China tensions, Bessent is considered a trusted figure within the cabinet. He has stated that he is ready to serve wherever the president deems appropriate.
Kevin Hassett: Currently serving as Director of the White House’s National Economic Council, Hassett is another contender. He has consistently supported Trump’s economic policies on trade and taxation.
Michelle Bowman: The Federal Reserve’s Vice Chair for Supervision, Bowman would become the second woman to lead the Fed after Janet Yellen if confirmed by Congress.
In addition to these three, Trump is also considering veteran economists Kevin Warsh and Christopher Waller, both of whom have previously advised former U.S. presidents.
