US President Donald Trump on Tuesday called for Federal Reserve Chair Jerome Powell to resign if allegations of him misleading lawmakers about expensive renovations at the Fed’s headquarters turn out to be true.
Speaking at a Cabinet meeting, Trump strongly criticised Powell, calling him unfit for the role. He said that if Powell gave false information to Congress, it would be reason enough for him to resign. Trump added that the country needs someone in the position who would lower interest rates.
Trump has been unhappy with the Fed’s decision to keep interest rates steady. Last month, he said he would appoint someone who would reduce borrowing costs if he returns to office.
Others in Trump’s circle have echoed the same criticism. Bill Pulte, head of the Federal Housing Finance Agency, has asked Congress to investigate Powell, accusing him of giving misleading testimony about the Fed’s renovation work, a report by Bloomberg said. Pulte has also demanded Powell’s resignation, something that Trump has called for publicly.
Criticism and allegations surrounding Fed’s renovation
Reports in the media have said the Fed’s renovation project has become very costly and includes luxury upgrades. During a recent Senate hearing, Powell disagreed with those reports and said many of the claims were wrong or exaggerated.
Trump has often gone back and forth on Powell’s future. At times, he has said Powell should be removed as soon as possible, while at other moments, he’s claimed he doesn’t plan to fire him.
Trump had last month said that he had a list of three to four people he was considering to replace Jerome Powell when his term ends in May 2026. He made it clear that he would pick someone who supports lowering interest rates, a decision that could challenge the central bank’s independence.
Trump has repeatedly criticised Powell for the Fed’s policy choices, calling him a “stubborn mule and a stupid person” for refusing to cut rates.