Trump demands Powell resign over economic mismanagement
- President Trump has expressed his dissatisfaction with Federal Reserve Chairman Jerome Powell, specifically criticizing his decision not to cut interest rates.
- Trump publicly called for Powell's resignation, stating it would be beneficial for the country, amid controversy over costly renovations at the Fed's headquarters.
- These events highlight ongoing tensions between the White House and the independent central bank, with potential ramifications for economic policy.
In the United States, President Donald Trump has faced ongoing criticism of Federal Reserve Chairman Jerome Powell, whom he appointed in 2017. Trump's discontent has grown primarily due to Powell's refusal to lower interest rates to levels that Trump deems acceptable. Recently, Trump publicly lambasted Powell, suggesting that his resignation would be beneficial for the country. The president's frustrations intensified following the Fed's costly renovation of its headquarters, which ballooned from an initial estimate of $1.9 billion to nearly $2.5 billion due to rising material costs. Moreover, as Trump's administration imposed significant tariffs on major trading partners, he demanded that the Fed respond by lowering interest rates. Despite Trump's calls for Powell's resignation, the Federal Reserve maintains an independent stance and has indicated that it will not yield to political pressure. Despite the turmoil surrounding these events, financial markets have largely remained stable, signaling that investors may be growing more accustomed to Trump's unpredictable political maneuvers. Analysts suggest that Trump's approach to Powell could backfire, as it might consolidate Powell's resolve to maintain his monetary policy stance despite external pressures.