Trump demands Jerome Powell's resignation over deceptive testimony claims

In the United States, President Donald Trump intensified his feud with Federal Reserve Chair Jerome Powell, recently calling for his immediate resignation. Trump’s growing frustrations stem from Powell's decision not to lower interest rates, which the President claims costs the U.S. economy significantly. The calls for Powell's resignation came after Bill Pulte, the head of the Federal Housing Finance Agency (FHFA), accused Powell of providing deceptive statements in his testimony before Congress. This allegation prompted Trump to repost Pulte's statement to his Truth Social account with a demand for Powell's resignation, stating it was 'too late.' The context of Trump's criticism relates to his broader economic concerns, particularly about U.S. interest rates being higher compared to those in other countries. Trump had previously communicated with Powell, urging him in a note to reduce rates, which he argued were 'artificially high' and detrimental to the economy. Trump's remarks were reinforced by pushback around an alleged '$2.5B building renovation scandal,' in which Powell reportedly made several misleading statements regarding the Federal Reserve's expenses. This situation escalated tensions between Trump and Powell, further polarizing opinions surrounding the Federal Reserve. Reactions to the push for Powell’s resignation included comments from House Judiciary Chair Jim Jordan, who acknowledged the need for oversight. Jordan indicated that the committee would consider the claims against Powell thoroughly. Additionally, Treasury Secretary Scott Bessent, when asked about the potential transition of leadership at the Federal Reserve, noted the importance of the Fed managing its budget appropriately during this period of economic tightening. Bessent also hinted at several possible candidates to replace Powell without confirming his own future role. This unfolding drama illustrates the complicated relationship between political leadership and independent economic institutions in the U.S. The call for Powell's resignation and the allegations against him raise significant questions about governance, accountability, and the balance of power within economic policy-making. As these dynamics continue to develop, they could impact not only the Federal Reserve's credibility but also broader economic policy decisions ahead of a critical period for U.S. financial markets.