U.S. President Donald Trump has called for Jerome Powell to resign as chair of the Federal Reserve if the allegations against him prove true.
Trump's Call for Powell's Resignation
During a cabinet meeting, Trump stated that Powell’s reluctance to cut interest rates has cost the country billions of dollars, urging him to resign immediately. The president expressed dissatisfaction with the Fed's failure to change interest rates recently.
Congress Investigates Powell
Jerome Powell has been accused of misleading lawmakers regarding a $2.5 billion renovation of the Federal Reserve’s headquarters. Trump noted, 'If the allegations prove truthful, then he should resign.' The claims gained credibility when FHFA Director Bill Pulte and Senator Cynthia Lummis alleged that the Fed lied under oath.
Trump's Shortlist for Fed Candidates
Trump mentioned he has two or three contenders suitable for the role who align with his economic vision. Among the candidates are: * Treasury Secretary Scott Bessent, known for easing U.S.–China tensions. * Kevin Hassett, Director of the National Economic Council, who supports Trump’s economic policies. * Michelle Bowman, Vice Chair for Supervision at the Federal Reserve, who could become the second woman to lead the Fed. Additionally, Trump is considering economists Kevin Warsh and Christopher Waller, both of whom have previously advised former U.S. presidents.
Trump's call for Jerome Powell's resignation and the potential candidates for his position reflect the growing tension between the administration and the Federal Reserve.
