Trump intensifies calls for Fed Chair Powell’s resignation as FHFA’s Pulte pushes for a congressional probe into his testimony.
The Federal Reserve Chair has been requested to resign by US President Donald Trump in response to the increasing demand for an investigation into his testimony before the Senate. In contrast to his predecessors during the Biden administration, the president of the United States has failed to reduce interest rates in recent months.
Trump urges Jerome Powell to resign as the chairman of the Federal Reserve
Trump has reiterated his call for the Federal Reserve Chair to resign from his position, characterizing him as “terrible” and unsuitable for the position. In response to inquiries regarding the imminent congressional investigations into the Federal Reserve Chair, the president of the United States reiterated his position during a press conference.
Trump urged him to resign immediately, citing his refusal to reduce interest rates despite improving inflation metrics. Additionally, the president of the United States is accusing the Federal Reserve Chair of demonstrating bias in his management of the Federal Reserve’s policy. He has maintained the current level of interest rates, citing Trump’s tariffs as the cause of inflation concerns and maintaining a cautious stance.
To begin, Trump observes that Powell was liberal in his approach to reducing interest rates during the Biden administration. During the period preceding the 2024 Presidential election, Jerome Powell implemented numerous rate cuts; however, he has since taken a firm stance against them.
Trump has launched numerous attacks against Powell, characterizing him as “terrible” and “too slow” for the position due to his frustration with his stance. Trump is considering his options for a prospective replacement for Jerome Powell, as a previous meeting between the two did not result in a positive outcome.
Powell is the subject of a congressional inquiry
Following his Senate testimony in July, Jerome Powell may be the subject of a congressional investigation. The Federal Reserve Chair is accused of providing misleading testimony to the Senate Banking Committee regarding a $2.5 billion renovation of the Federal Reserve headquarters.
FHFA Director Bill Pulte and Senator Cynthia Lummis contend that the Federal Reserve Chair falsified under oath, refuting the extravagant expenditure of resources on the renovation. The probability of a July Fed rate cut has increased by 23% since the FHFA Director’s calls for Powell’s investigation.
It is uncertain whether Powell will yield to political pressure from Trump, even though numerous Federal Reserve governors have suggested that a rate cut is imminent.
