Trump’s explosive call for Fed Chair Powell to resign immediately exposes the deep rift between the administration and the central bank that could reshape America’s economic future.
At a Glance
- President Trump demanded Jerome Powell’s immediate resignation as Federal Reserve Chairman
- The call follows accusations that Powell lied to lawmakers about Fed headquarters renovations
- Critics claim Powell’s refusal to lower interest rates is harming the U.S. economy
- Powell insists his removal before his term ends in 2026 is not permitted by law
- A shortlist of potential replacements is already circulating among Trump advisors
The Breaking Point Between Trump and Powell
The economic battle lines have been drawn, and President Trump has had enough of Jerome Powell’s leadership at the Federal Reserve. In a blistering Truth Social post, Trump declared that Powell “should resign immediately,” escalating tensions that have been simmering for months. This isn’t just political theater—it’s a fundamental clash over America’s economic direction at a time when inflation continues to eat away at family budgets and interest rates remain stubbornly high despite mounting pressure to provide relief to struggling businesses and homeowners.
The immediate catalyst for Trump’s call appears to be accusations from Federal Housing Finance Agency Director Bill Pulte, who claims Powell provided deceptive testimony to the Senate Banking Committee regarding lavish renovations to the Fed’s Washington headquarters. It’s the classic Washington story—while everyday Americans tighten their belts, the bureaucratic elite apparently feels entitled to luxury upgrades on the taxpayer’s dime. Pulte didn’t mince words in his condemnation, taking his case directly to the American people.
Trump calls for Powell's resignation, criticizes Fed chief https://t.co/ar4fScWH35
— Pulte (@pulte) July 2, 2025
More Than Just Renovations
Let’s be honest—this confrontation isn’t really about fancy office decor. Trump’s frustration with Powell runs much deeper, focusing on what many conservatives view as a deliberately obstinate monetary policy that’s causing real economic harm. The Fed has refused to lower interest rates further despite clear signals that the economy needs the boost, seemingly more concerned with maintaining their own power and prestige than helping American families. This reluctance has cost the nation dearly, hampering growth and preventing the full economic revival that Trump’s policies could otherwise deliver.
The irony here is painful—Trump appointed Powell back in 2017, hoping for an ally in monetary policy. Instead, he got yet another establishment figure who seems more committed to the status quo than to American prosperity. Treasury Secretary Scott Bessent perfectly captured the Fed’s mindset, comparing it to “an old person afraid of falling”—so paralyzed by the fear of inflation that they’re willing to strangle economic growth through unnecessarily tight monetary policy. This overcautious approach is particularly frustrating given the Fed’s concerns about inflation from Trump’s tariffs.
🚨 JUST IN: President Trump sharply criticizes Federal Reserve Chair Jerome Powell:
"Anyone would be better than Powell — he’s simply not the right fit."
"I have three strong candidates in mind who would do an excellent job."
He calls for Powell’s resignation.
— Braxton (@Deeplythough885) June 29, 2025
Mounting Congressional Pressure
Trump isn’t the only one calling out Powell’s leadership. Republican Senator Cynthia Lummis delivered a scathing critique that resonates with Americans tired of seeing their economic interests sacrificed on the altar of bureaucratic vanity. When Lummis declares that “it’s time for new leadership at the Fed,” she’s expressing the frustration of millions who see their retirement savings eroded and home ownership dreams deferred because of Powell’s policies. Rep. Jim Jordan has even indicated that lawmakers might investigate Powell, adding congressional weight to these concerns.
“This is the Federal Reserve, not a modern-day Palace of Versailles, and it’s clear his inability to set aside his own biases in favor of sound policies proves it’s time for new leadership at the Fed,” – Republican Sen. Cynthia Lummis – https://finance.yahoo.com/news/trump-feds-powell-should-resign-immediately-111529874.html
The Powell Replacement Sweepstakes
While Powell insists that he cannot legally be removed before his term ends in 2026, the administration is already considering potential replacements. The shortlist reportedly includes Kevin Warsh, Kevin Hassett, Scott Bessent, David Malpass, and Christopher Waller—all individuals who might better align with Trump’s vision for a more dynamic, growth-oriented monetary policy. The strategy could involve appointing a new Fed board member to a 14-year seat who could later become chair, establishing influence at the central bank even before Powell’s term officially concludes.
Powell’s stubborn refusal to recognize the harm his policies are causing is perhaps the most infuriating aspect of this saga. While he speaks in lofty terms about “maximum employment” and “price stability,” everyday Americans are watching their purchasing power diminish month after month. The Fed has lowered rates by just one percentage point in 2024 and has inexplicably held rates steady in 2025, despite clear evidence that more aggressive action is needed. This isn’t prudent leadership—it’s bureaucratic obstinance that’s costing American families their financial security.
