U.S. President Donald Trump has intensified his public attacks on Federal Reserve Chair Jerome Powell, calling for his immediate resignation in a post on his Truth Social platform.
“‘Too Late’ should resign immediately!!!” Trump wrote, referencing Powell by nickname and linking to a news article about a federal housing regulator’s call for an investigation into Powell’s recent testimony regarding the costly renovations to the Federal Reserve’s Washington headquarters.
Trump originally appointed Powell to lead the central bank during his first term in office but has since grown increasingly critical of the Fed Chair’s handling of monetary policy. Chief among Trump’s grievances is Powell’s refusal to lower interest rates, which the president insists would help stimulate economic growth.
Although Trump has previously expressed frustration, he had stated earlier this year that he had “no intention of firing” Powell. However, his latest outburst raises new questions about whether he could attempt to remove Powell despite legal constraints.
The Federal Reserve declined to comment on the president’s latest remarks when contacted by the BBC.
On Tuesday, Powell noted that the central bank would likely have already cut rates if not for the uncertainty created by Trump’s aggressive tariff policies. Speaking at a central banking conference in Portugal, Powell responded affirmatively when asked if tariffs had impacted the Fed’s decisions.
The Federal Reserve is an independent agency, and U.S. law protects its board members from being removed without cause. In a 1935 Supreme Court ruling, the Court affirmed that leaders of independent federal agencies, including the Fed, can only be dismissed “for cause” before the end of their term.
Nevertheless, Trump has a track record of challenging such norms. During his previous presidency, he dismissed several independent agency heads, a move that often triggered legal battles and widespread criticism.
Powell has made it clear he would not voluntarily step down if asked, stating that the law does not permit the White House to force a resignation from his position.
The clash underscores broader tensions between the White House and the central bank over interest rates, inflation, and economic strategy, and signals more turbulence ahead as Trump seeks to reassert control over U.S. monetary policy.
