Whispers of Federal Reserve Chair Jerome Powell’s possible resignation have sparked a gleeful reaction from the Trump administration. President Trump, never one to mince words, has long lambasted Powell for keeping interest rates stubbornly high. The prospect of a new Fed leader who might slash rates has the White House buzzing with optimism.
The Trump administration is openly cheering reports that Powell might step down, while Federal Housing Finance Agency Director William Pulte claims it would jolt the economy. The administration, alongside figures like Office of Management and Budget Director Russ Vought, has piled pressure on Powell, slamming his leadership and the Fed’s lavish headquarters overhaul.
Tuesday’s cabinet meeting saw Trump at his fiery best, demanding Powell’s immediate resignation. He argued a new chair would prioritize lower interest rates to boost American competitiveness. The call was as much about policy as it was about settling old scores with a Fed chair Trump has never warmed to.
Trump’s Long-Standing Feud With Powell
Trump’s disdain for Powell isn’t new—he’s been vocal about it for years. On Friday, before jetting off to console Texas flood victims, he told reporters Powell’s performance was “terrible.” The president’s beef? High interest rates are strangling growth, and Powell is to blame.
“I think he’s doing a terrible job,” Trump declared, not holding back. He’s convinced the Fed’s refusal to cut rates is costing the nation billions. To Trump, Powell’s policies are a roadblock to making America the world’s economic powerhouse.
Pulte echoed Trump’s sentiments, suggesting Powell’s exit would unleash economic prosperity. “I’m encouraged by reports that Jerome Powell is considering resigning,” Pulte said, though he didn’t clarify what reports he meant. His optimism reflects a broader administration’s hope that a new Fed chair would align with Trump’s economic vision.
Fed’s Renovation Sparks Outrage
Powell’s troubles don’t end with interest rates—his management of the Fed’s headquarters renovation has drawn fierce criticism. The project, ballooning to $2.5 billion, is $700 million over budget. Critics, including Vought, see it as a symbol of fiscal irresponsibility.
“The Fed is way over budget on the renovation of its headquarters,” Vought said, comparing the costs to the Palace of Versailles. The price tag, at $1,923 per square foot, is double that of typical historic federal building renovations. Features like rooftop gardens and VIP elevators haven’t helped Powell’s case.
The Fed’s been running a deficit since FY23, a historic first, adding fuel to the fire. Vought’s Versailles jab wasn’t just witty—it underscored a deeper frustration with Powell’s priorities. Marble and water features don’t scream fiscal prudence when the Fed’s in the red.
Powell’s Tenure Under Scrutiny
Powell’s term as Fed chair runs until May 2026, with his broader Fed role extending to January 2028. That timeline hasn’t stopped Trump from pushing for an early exit. The president’s impatience reflects a belief that Powell’s policies are out of step with America’s needs.
Trump’s Friday remarks doubled down on his cabinet meeting outburst. “I think we should be 3 points lower, interest rates,” he said, arguing Powell’s high-rate stance is economic sabotage. The president’s frustration is palpable—America’s potential is being squandered, he claims.
Pulte’s vague nod to “reports” of Powell’s resignation added intrigue but little clarity. No concrete evidence of Powell planning to step down has surfaced. Still, the administration’s enthusiasm suggests they’re banking on the rumor becoming reality.
Economic Stakes and Political Games
Trump’s criticism of Powell often carries a personal edge. “He’s always late,” Trump griped, accusing Powell of cutting rates eagerly under Biden but dragging his feet now. The jab hints at a deeper distrust of Powell’s motives and loyalties.
The Fed’s renovation debacle has given Trump and his allies fresh ammunition. A $2.5 billion project with premium marble and terrace gardens feels tone-deaf when the economy’s struggling. Vought’s Versailles quip lands hard because it paints Powell as out of touch.
Whether Powell resigns or weathers the storm, the Trump administration’s message is clear: the Fed needs a shake-up. Lower rates, fiscal discipline, and a chair who shares Trump’s vision are non-negotiable. For now, Powell’s fate hangs on unverified reports and a president who’s never shy about demanding change.
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Author: Benjamin Clark
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