President Donald Trump said during a Cabinet meeting on Tuesday at the White House that Jerome Powell should resign immediately if allegations that he misled Congress turn out to be true.
Trump’s comment was made in front of reporters after a question about the Federal Reserve’s renovation project, which has been under scrutiny. “Then he should resign immediately,” Trump said. “We should get somebody in there that’s going to lower interest rates.”
Trump repeated that Powell was a “terrible” choice and made it clear he wants someone in charge of the Fed who will stop keeping borrowing costs high. According to Bloomberg, Trump has already been looking at replacements and plans to pick someone new when Powell’s term ends in May 2026. The president said last month he has three to four names on his list, all of whom he believes will support his push to cut rates.
Trump boosts calls to investigate the Fed
Criticism of Powell isn’t coming from Trump alone. Bill Pulte, the director of the Federal Housing Finance Agency, told lawmakers that Powell’s testimony about the ongoing renovations at the Fed’s headquarters was misleading. Pulte publicly called for an investigation into Powell’s statements, describing them as “deceptive.” Trump later amplified Pulte’s demand on social media, pushing for Powell’s resignation again.
The Fed’s headquarters renovation project has drawn media attention for its skyrocketing costs and alleged extravagant features. During a Senate hearing, Powell said some of the reporting was “misleading and inaccurate in many, many respects.”
Still, pressure from Trump and his allies continued to build. Trump has already taken shots at Powell for holding rates steady, saying his economic policies are being held hostage by a “stubborn mule and a stupid person.” He’s also contradicted himself on whether Powell will be fired, posting that “Powell’s termination cannot come fast enough!” before later saying he has “no intention of firing him.”
The central bank kept rates unchanged in June, holding them in the 4.25% to 4.5% range, where they’ve been since December. Powell told Congress that inflation trends would normally justify a rate cut, but uncertainty caused by tariff policies has forced the Fed to wait. Powell emphasized there’s no urgent need to make changes, and the bank will act carefully to avoid making things worse.
Bessent distances himself from Fed rumors
While Powell’s position becomes shakier, speculation has already started about who might be chosen to replace him. One name floated in DC circles is Scott Bessent, the Treasury Secretary. But Bessent pushed back against that during an interview with Maria Bartiromo on FOX Business.
Speaking on Mornings with Maria, he said, “I think I have the best job in Washington. I get to interact with the president. The Cabinet that he’s chosen is fantastic, and being part of that Cabinet is the dream of a lifetime for me.”
Bessent didn’t rule it out, though. He added, “I will go where the president thinks that I am best suited.” Bessent previously worked in finance and joined the administration from the hedge fund world. He’s shown he can represent Trump’s interests abroad.
Earlier this year, he traveled to Switzerland with Jamieson Greer, the US Trade Representative, to help settle trade tensions with China. The two worked to find a soft landing amid heated tariff negotiations, making Bessent one of Trump’s key players when it comes to international economic strategy.
Trump’s criticism of Powell isn’t new, but the timing of this latest push, combined with calls for investigations and talk of deception, shows a more aggressive stance from the White House. With Powell’s term ending in 2026, Trump is already shaping the future of the Federal Reserve. For now, Powell is still in his job.
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