Trump Demands Fed Chair Powell Resign Amid Interest Rate Dispute

President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, demanding his resignation over what he calls a failure to cut interest rates in a timely manner. In a post on Truth Social, Trump referred to Powell as “‘Too Late,’” calling for him to “resign immediately.”

Trump linked to an article featuring Federal Housing Finance Agency head Bill Pulte, who has called on Congress to investigate Powell. Pulte alleges that Powell gave “deceptive” testimony to the Senate regarding the Federal Reserve’s planned headquarters renovations. Pulte has also echoed Trump’s calls for immediate rate cuts and Powell’s resignation.

Throughout recent months, Trump has repeatedly argued that interest rates should be at least 2% to 3% lower, claiming that Powell’s policies are hindering economic recovery. Powell, however, has defended the Fed’s stance, citing inflationary risks—particularly those stemming from Trump-era tariffs—as the reason for maintaining higher rates.

The ongoing clash has fueled speculation that Trump, now out of office but still highly influential, may seek to undermine Powell’s authority before his term ends in May 2026. Reports suggest he could even preemptively name Powell’s successor, a move that would raise serious concerns about the central bank’s independence.

As debates over inflation and monetary policy continue, Trump’s pressure campaign has amplified tensions within financial markets and among policymakers. With Powell committed to his cautious approach and Trump pushing for aggressive rate cuts, the standoff highlights deep divisions over the direction of U.S. economic policy.