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Trump demanded that Jerome Powell resign "immediately" as chairman of the Federal Reserve

Amid his dispute with the official to lower interest rates, the president reacted to statements by Federal Housing Finance Agency director Bill Pulte.

Powell at the Federal Reserve/ Saul Loeb.

Powell at the Federal Reserve/ Saul Loeb.AFP

Joaquín Núñez
Published by
Joaquín Núñez

Donald Trump asserted that Jerome Powell, chairman of the Federal Reserve, should "resign immediately." Amid his dispute with the official to lower interest rates, the president reacted to statements by Bill Pulte, director of the Federal Housing Finance Agency, who said Congress should investigate Powell.

“Too Late, should resign immediately!!!", Trump posted on his Truth Social account, citing a Bloomberg article on Pulte's statements. According to the Federal Funding Agency director's arguments, Powell's latest testimony in front of Congress was "misleading."

"I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed ‘for cause'", he said on his X account.

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Pulte has been publicly criticizing Powell, who took office in February 2018, for weeks. Regarding the decision not to lower rates, he noted that people are being hurt by higher borrowing costs.

Powell's term at the head of the Federal Reserve ends in eleven months, so Trump will be in charge of nominating his successor. As reported by The Wall Street Journal, among the main names under consideration are Kevin Warsh, former Fed governor; Kevin Hassett, director of the National Economic Council; Scott Bessent, current Treasury secretary; David Malpass, former World Bank president; and Christopher Waller, current Fed governor.

Bessent has already spoken publicly about this speculation, noting that he would be open to taking the job. "I'll do whatever the chairman wants," he declared.

How is the Fed chairman chosen?

The process begins with the president, who chooses a nominee and sends him or her to the Senate for confirmation. There it goes through the Committee on Banking, Housing and Urban Affairs, where it will have a hearing to answer questions from senators. If initially approved, it goes to the floor where he only has to get 51 votes in favor to be confirmed or 50 plus the vice president's tie-breaker.

The term as chairman of the Federal Reserve lasts four years and he is eligible for reappointment. For example, Alan Greenspan was nominated by Ronald Reagan in 1987 and remained in office until 2006, being re-elected during the terms of George H.W. Bush, Bill Clinton, and George W. Bush. 

The Federal Reserve is also run by a 7-member Board of Governors, all nominated by the president and confirmed by the Senate.
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