Trump Intensifies Criticism of Federal Reserve’s Jerome Powell: Calls for Resignation

Former President Donald Trump has ramped up his public criticism of Federal Reserve Chairman Jerome Powell, urging him to resign as his tensions with the central bank continue to escalate. Trump, who initially appointed Powell during his presidency, has expressed dissatisfaction with the Fed’s monetary policies since taking office.

Trump’s Critique of Jerome Powell

In a recent Truth Social post, Trump labeled Powell as "Jerome ‘Too Late’ Powell" and demanded his immediate resignation. Trump’s contention revolves around the Fed’s recent decisions, or lack thereof—particularly a maintained interest rate stance following the June policy meeting.

• Quote from Trump: "‘Too Late’ should resign immediately!!!"
• In response to a Bloomberg article suggesting Powell’s performance warranted investigation, Trump echoed the sentiment of Bill Pulte, Chairman of the Federal Housing Finance Agency, who stated that Powell "needs to be investigated by Congress immediately."

History of Tension

Trump’s dissatisfaction with Powell is not a new development. From the outset of Powell’s tenure, Trump has publicly voiced concerns about the Fed’s decision-making. Notably, the president criticized Powell’s choice to raise interest rates during a 2018 meeting, a move that he felt hindered economic growth.

Key Points:

• Initial Appointment: Trump appointed Powell as Fed Chairman in 2018.
• Former Criticism: Trump’s frustration began with rate hikes shortly after Powell assumed office.

GOP Concerns Over Fed Policies

Since his return to the White House, Trump and other Republican lawmakers have intensified their critique of the Federal Reserve. During a recent hearing before the House Financial Services Committee, Powell faced scrutiny from GOP members over the Fed’s contradictory monetary policies.

• Congressman Bill Huizenga remarked:
  • "There’s no recession."
  • "So, what is it that’s keeping, in your mind, the Fed from … lowering interest rates?"

Powell attributed the Fed’s caution regarding rate cuts to anticipated inflationary impacts from the new tariffs introduced by the administration.

Trump’s Sharp Criticism in Media

Throughout the past week, Trump has repeatedly criticized Powell in the media, categorizing him as a "bad" and "stupid" person during an interview with Fox News. In a handwritten note to Powell, he argued for a reduction in rates, claiming there is “no inflation.”

Key Excerpts from Trump’s Note:

• "Jerome — You are, as usual, ‘Too Late.’"
• “Hundreds of billions of dollars are being lost! No inflation!”

Powell’s Position

Despite the mounting pressure and calls for resignation, Powell remains steadfast in his commitment to complete his term, scheduled to end next year. He has repeatedly emphasized that decisions by the Fed are grounded in detailed economic forecasts and not political pressures.

Conclusion

The ongoing conflict between Trump and Powell raises significant questions about the independence of the Federal Reserve and its monetary policy in an election year. As the economy continues to face scrutiny, the dynamics between the former president and the sitting Fed chairman will likely remain a focal point of political discourse.

For further insights on economic policies and Federal Reserve dynamics, check out Bloomberg and official statements on the Federal Reserve’s website.