Trump called on Jerome Powell to step down and denounced him misleading lawmakers about the costs of expensive renovations at the Fed headquarters.
The US President is considering new candidates for the Federal Reserve position.
US President Donald Trump has called for Federal Reserve Chairman Jerome Powell to step down if the allegations against him prove true. Powell has been accused of spending expensive renovations at the Fed headquarters and being a misleading lawmaker for failing to cut interest rates in recent months.
Trump urges Jerome Powell to resign as Fed’s chair
At a cabinet meeting Tuesday, President Trump said Jerome Powell’s reluctance to cut interest rates cost billions of dollars and prompted him to resign immediately. The president is currently considering a list of potential alternatives for the Fed Chairman.
Furthermore, Trump criticized Federal Reserve users for bias in policy decisions and criticized them for not changing interest rates. In response, Powell has denounced Trump’s tariffs for promoting inflation concerns.
“I think he’s terrible,” the president added.
Congress investigates Powell’s allegations
Jerome Powell is accused of misleading testimony to members of the Senate Banking Committee on $2.5 billion renovations to the Federal Reserve headquarters.
If allegations that he deceived Congress over the costs of renovations prove true, “He should resign immediately,” Trump said. “We should take people who lower interest rates there.”
The allegations gained even more credibility after FHFA Directors Bill Plute and Sen. Cynthia Ramis alleged that the Fed lied under oath and authorities were misunderstood. As a result, Powell could face a Congressional investigation in July.
Trump’s finalist for Fed candidate
Trump said he has two or three candidates suitable for the role, each in line with his economic vision.
- Treasury Secretary Scott Bescent: Known for his role in easing tensions between us and China, Bescent is considered a trustworthy person in the cabinet. He said he was ready to serve wherever he thought the president was appropriate.
- Kevin Hassett: Hassett, who is currently the director of the White House’s National Economic Council, is another candidate. He has consistently supported Trump’s economic policies on trade and taxation.
- Michelle Bowman: Bowman, vice-chairman of the Federal Reserve oversight, became the second woman to lead the Fed after Janet Yellen, if confirmed in Congress.
In addition to those three, Trump is also considering veteran economists Kevin Wahsh and Christopher Waller.
