“It’s long overdue—resign immediately” — President Donald Trump to Federal Reserve Chairman Jerome Powell

“It’s long overdue—resign immediately” — President Donald Trump to Federal Reserve Chairman Jerome Powell
[Washington, July 3, 2025] — U.S. President Donald Trump has called for the immediate resignation of Federal Reserve Chairman Jerome Powell. In a post on his social media platform, Truth Social, Trump wrote:
“It’s long overdue—he should resign now!!!”

Trump also shared a news report along with his post, which alleged that a U.S. housing regulatory agency has accused Powell of providing misleading information about the cost and planning of renovations at the Federal Reserve headquarters, and called for an investigation into the matter.

Background on the Trump-Powell Relationship

Trump had appointed Jerome Powell as Chairman of the Federal Reserve in 2018. However, disagreements over economic policy soon emerged—particularly on the issue of interest rates. Trump wanted to cut rates quickly to stimulate the economy, while Powell did not follow that approach. As a result, Trump became increasingly vocal in his criticism of Powell.

Earlier this year, Trump said that while he did not want to fire Powell, he did want the Fed to cut interest rates to boost the economy.

Dispute Over Interest Rates and Tariff Policy

Recently, Powell stated at a forum in Portugal:
“If President Trump had not threatened to raise tariffs, the central bank would have lowered interest rates much earlier.”
With this statement, Powell indirectly blamed Trump’s trade policies for obstructing the Federal Reserve’s monetary decisions.

Legal Debate over Resignation Demand

Jerome Powell has already declared:
“Even if the President asks me to step down, I will not resign.”
He argues that a 1935 Supreme Court ruling stated that members of independent federal agencies can only be removed before their term ends for “just cause.”

However, President Trump has previously set a precedent by removing heads of autonomous agencies, which were later challenged in court.

Political Pressure and Criticism

On Wednesday, Federal Housing Finance Agency Director Bill Pulte wrote on X (formerly Twitter):
“I urge Congress to investigate Jerome Powell’s political bias and his false testimony before the Senate.”
He claimed this should be considered sufficient grounds for Powell’s removal.

Last week, during a Senate hearing, Powell claimed that reports about excessive spending and luxury renovations at the Federal Reserve headquarters were “misleading and false.”
This too has caused division among lawmakers.