Trump Demands Federal Reserve Chair Jerome Powell Resign Immediately

Former US President Donald Trump has renewed his attacks on the Federal Reserve, calling for its chair, Jerome Powell, to resign immediately in a fresh outburst that escalates long-running tensions between the former president and the nation’s central bank.

Taking to his Truth Social platform on Monday, Trump declared: “‘Too Late’ should resign immediately!!!” He also shared a link to a news article about a US federal housing regulator reportedly urging an investigation into Mr Powell’s testimony about costly renovations at the Federal Reserve’s Washington headquarters.

Trump originally nominated Mr Powell to the top job at the Fed during his first term in office. But relations quickly soured as Trump repeatedly slammed Powell for refusing to slash interest rates as much as he wanted. Trump has argued that lower rates would boost economic growth, especially as he ramps up his economic messaging for his re-election campaign.

This isn’t the first time Trump has publicly pressured the Fed chair. However, despite his repeated barbs, Trump has previously claimed he has “no intention of firing him.” Now, with his latest call for resignation, the former president appears to be testing the limits of presidential authority over an institution that is meant to remain independent of political influence.

Mr Powell, who was later renominated to the position by President Joe Biden, has said his current term will run until May 2026. He has made it clear he does not plan to step down even if asked to do so by the White House, pointing out that it is “not permitted under law” for a president to fire the Fed chair without just cause.

A landmark 1935 US Supreme Court ruling supports the independence of board members at agencies like the Federal Reserve. Under this precedent, they can only be removed “for cause” — which typically means proven misconduct or neglect of duty. The Federal Reserve itself declined to comment when asked by the BBC about Trump’s latest remarks.

Tensions have flared in recent days after Powell said this week that the Fed might have already cut interest rates further if it weren’t for the economic uncertainty caused by Trump’s aggressive tariff policies. Speaking at a gathering of central bankers in Portugal, Powell responded “I think that’s right” when asked whether US rates would have been reduced again this year without the disruptive impact of the administration’s trade moves.

Despite his legal constraints, Trump has often challenged the norms of Washington’s political and institutional frameworks, famously removing other independent regulators during his first term — actions that have often ended up in court battles.