President Donald Trump’s feud with Federal Reserve Chair Jerome Powell has reached a boiling point, with the commander-in-chief demanding Powell’s immediate resignation.
The clash, rooted in policy disagreements and now allegations of misconduct, showcases a president unafraid to challenge entrenched bureaucrats. Yet, the call for resignation raises questions about the Fed’s independence and the optics of political pressure.
Fox Business reported that Trump has sparred with Powell for months over the Fed’s refusal to slash interest rates, a move Trump argues is strangling economic growth.
The president intensified his attacks this week, accusing Powell of keeping rates "artificially high" and costing the nation dearly. This isn’t just a policy spat—it’s a public showdown with high stakes for markets and voters.
On Monday, Trump sent a pointed note to Powell, lambasting him for lagging behind other nations with lower rates. "'Jerome, you are, as usual, too late,'" White House press secretary Karoline Leavitt read aloud, channeling Trump’s frustration. The zinger lands hard, but critics might argue it’s easier to snipe from the sidelines than to navigate the Fed’s tightrope.
Trump’s grievance isn’t new—he’s long claimed Powell’s high rates are bleeding the U.S. economy. He argues that hundreds of billions are lost with no inflation to justify the policy. It’s a populist rallying cry, but economists might counter that rate cuts aren’t a magic bullet for complex global markets.
By Wednesday, the feud took a sharper turn when Trump reposted a Bloomberg article on Truth Social, amplifying calls for an investigation into Powell.
The article highlighted FHFA Director Bill Pulte’s demand for Congress to probe Powell’s Senate testimony. Trump’s repost wasn’t subtle—it was a megaphone for his “resign now” ultimatum.
Trump’s Truth Social post didn’t mince words: "‘Too Late’ should resign immediately!!!" The nickname “Too Late” is vintage Trump, a biting jab at Powell’s perceived sluggishness. But branding aside, the resignation demand risks alienating those who see the Fed’s autonomy as sacrosanct.
The spark for Wednesday’s escalation came from FHFA Director Bill Pulte, who accused Powell of deceptive testimony before the Senate Banking Committee. Pulte’s statement on X called for a congressional investigation, alleging Powell misled senators about the Fed’s headquarters renovation. It’s a serious charge, but without hard evidence, it’s a political hot potato.
Last week, Powell faced questions about the Fed’s pricey Washington, D.C., headquarters overhaul during his Senate testimony.
Sen. Cynthia Lummis, R-Wyo., claimed Powell fudged details, citing a lavish private dining room, elevator, skylights, water features, and a roof terrace. If true, such embellishments could erode public trust in Powell’s leadership.
Pulte didn’t hold back, labeling the $2.5 billion renovation a “scandal” and Powell’s testimony as “malfeasance.” “Jerome Powell’s $2.5B Building Renovation Scandal stinks to high heaven,” Pulte posted on X. The outrage is palpable, but skeptics might wonder if this is a policy critique dressed up as a gotcha.
Pulte’s call for investigation wasn’t just a social media outburst—he urged Congress to examine Powell’s “political bias” and testimony for grounds to remove him “for cause.”
“I am asking Congress to investigate Chairman Jerome Powell,” Pulte declared. It’s a bold move, but congressional appetite for such a probe remains uncertain.
House Judiciary Chair Jim Jordan, R-Ohio, weighed in cautiously, telling Bloomberg his committee hasn’t specifically discussed investigating Powell. “We haven’t discussed that specifically,” Jordan said, keeping his cards close. His restraint suggests a GOP not yet ready to fully back Trump’s crusade.
Still, Jordan left the door open, noting his committee’s oversight duties over the executive and judicial branches. “We’ll take a look at that,” he told Bloomberg. It’s a diplomatic sidestep, but one that keeps Powell in the hot seat for now.
The Federal Reserve, through a representative, declined to comment on the brewing storm. Silence from the Fed is predictable—Powell’s team likely sees no upside in engaging with Trump’s broadsides. But stonewalling won’t make the controversy vanish.
Trump’s push to oust Powell taps into a broader conservative frustration with unelected officials wielding outsized power. The Fed’s independence is meant to shield it from political whims, but Trump’s base sees it as a shield for elitism. Balancing that tension is where this fight gets messy.
