Trump Demands Fed Chair Powell’s Resignation Amid Interest Rate Dispute

Former President Donald TRUMP escalated his feud with Federal Reserve Chair Jerome Powell, calling for his immediate resignation in a Truth Social post. The demand follows a request by the Federal Housing Finance Agency (FHFA) to investigate Powell for alleged "political bias" and "deceptive testimony" regarding renovations at the Federal Reserve headquarters.

The conflict centers on their opposing views on interest rate cuts. Trump has repeatedly criticized Powell for resisting rate reductions, which he believes WOULD spur economic growth. "I’m going to put somebody that wants to cut rates," Trump told reporters last month, labeling Powell as "a stubborn mule and a stupid person."

Lower interest rates typically stimulate economic activity but risk accelerating inflation—a trade-off central banks carefully monitor. Some economists warn that premature cuts could destabilize markets, while others argue the Fed’s caution stifles expansion.