Donald Trump’s explosive demand for Federal Reserve Chairman Jerome Powell to resign has triggered a political and economic confrontation with seismic implications for inflation, interest rates, and every American’s financial outlook.
At a Glance
- Trump called for Federal Reserve Chairman Jerome Powell to resign immediately, intensifying a growing White House pressure campaign.
- The resignation demand follows accusations from Federal Housing Finance Agency Director Bill Pulte that Powell lied to lawmakers about Fed headquarters renovations.
- Republican Senator Cynthia Lummis criticized Powell’s leadership, comparing the Fed headquarters renovations to a “modern-day Palace of Versailles.”
- Trump has criticized Powell’s refusal to lower interest rates, claiming it has cost America “a fortune.”
- Powell has stated his removal before his term ends in 2026 is not permitted by law and intends to serve his full term.
A Pressure Campaign Turns Into a Blitz
Donald Trump’s already blistering feud with his own 2017 appointee, Jerome Powell, erupted this week as he demanded the Fed chairman’s resignation “immediately” via Truth Social. Trump accused Powell of harming the U.S. economy by keeping interest rates too high and blamed him for sabotaging a recovery that remains sluggish for average Americans.
Watch a report: Trump demands Powell resign.
Adding fuel, Federal Housing Finance Agency Director Bill Pulte accused Powell of lying to Congress about the scale and cost of lavish renovations to the Fed’s D.C. headquarters.
Trump calls for Powell's resignation, criticizes Fed chief https://t.co/ar4fScWH35
— Pulte (@pulte) July 2, 2025
Critics say Powell misled lawmakers during Senate Banking Committee testimony—raising the stakes from policy dispute to possible perjury.
Powell, now besieged from multiple angles, maintains he cannot legally be removed and plans to serve until his term expires in 2026.
Versailles in Washington?
The controversy intensified as critics likened the Fed’s renovations to “a modern-day Palace of Versailles.” Senator Cynthia Lummis
TRUMP CALLS FOR FED CHAIR POWELL TO RESIGN IMMEDIATELY
Trump demanded Jerome Powell’s immediate resignation, escalating political pressure on the Fed. The attack raises fresh concerns about central bank independence ahead of key policy decisions. Markets may grow cautious if… pic.twitter.com/jDNbdA2KPb
— Naeem Aslam (@NaeemAslam23) July 2, 2025
lambasted Powell’s leadership, accusing the Fed of elitism and fiscal detachment. “This is the Federal Reserve, not Versailles,” Lummis declared. “It’s clear his inability to set aside his own biases proves it’s time for new leadership.”
Trump, echoing that sentiment, slammed Powell for ignoring economic suffering while “playing palace” with taxpayer money. In response to the growing backlash, House Judiciary Chairman Jim Jordan signaled Congress might launch a formal inquiry into Powell’s testimony and conduct.
Behind the scenes, Trump’s team is reportedly drafting a shortlist of successors—Kevin Warsh, Scott Bessent, and Christopher Waller among them. According to insiders, the White House is even exploring a workaround: appointing a new board member now who could ascend to the chairmanship when Powell’s term ends.
Fed Losing Faith With Voters
The Fed’s defense—namely, that independence and long-term planning trump political pressure—is falling flat with voters facing steep mortgage rates and stagnant wages. Trump’s maneuver isn’t just a vendetta—it’s a bid to realign the Fed with his populist economic vision.
As the battle escalates, one truth emerges: this isn’t just about Powell. It’s about control over America’s financial fate.
