Political Pressure Mounts on Fed Chair Jerome Powell Amid Calls for Resignation

Federal Reserve Chair Jerome Powell faces escalating political scrutiny as a coalition led by former President Donald TRUMP and key Republican figures demands his resignation. Accusations range from policy missteps to alleged deception during congressional testimony on the Fed's $2.5 billion headquarters renovation.

Trump, who initially appointed Powell in 2017, has intensified criticism following his 2024 re-election, blaming the Fed chair for economic losses due to sustained high interest rates. Social media outbursts from Trump suggest replacements like Kevin Warsh or Christopher Waller, while FHFA Director Bill Pulte claims Powell's policies are destabilizing housing markets.

Senators Cynthia Lummis, Rick Scott, and Tommy Tuberville have joined the fray, condemning Powell's leadership as inflationary and fiscally reckless. Treasury Secretary Scott Bessent advises against immediate dismissal to avoid market upheaval but supports a 2026 replacement. House Judiciary Chair Jim Jordan hints at potential congressional investigations into Powell's conduct.