Trump urges Powell to resign again, escalating pressure amid Fed independence concerns

Trump Pressures Powell to Resign Again

On July 2nd, U.S. President Trump shared an article on social media titled "Federal Housing Finance Agency Director: Federal Reserve Chairman Should Face Congressional Investigation" and commented that "Mr. Too Late" should resign immediately. Trump has previously referred to Federal Reserve Chairman Powell as "Mr. Too Late," criticizing him for being slow in monetary policy and economic management.

Trump's latest statement has increased attention on the tense relationship between the White House and the Federal Reserve, especially regarding interest rate policies and inflation management. Trump has long pressured the Federal Reserve to make large interest rate cuts to support economic growth and ease the burden of debt interest.

Federal Housing Finance Agency Director Calls for Congressional Investigation

On the same day, U.S. Federal Housing Finance Agency Director William Pulte called on social media for Congress to investigate Powell, accusing him of providing "deceptive testimony" during a Senate hearing and alleging political bias with insufficient evidence when discussing the Federal Reserve headquarters renovation plans.

Pulte noted that these actions are sufficient grounds for Powell's dismissal, emphasizing that "The Federal Reserve Chairman must be accountable to Congress, and if there are misleading statements in his testimony, a full investigation is necessary."

Controversy Over Federal Reserve Headquarters Renovations Escalates

Recently, U.S. media reported that the cost of the Federal Reserve headquarters renovations has significantly increased, including several luxury facilities, sparking public doubts about the Federal Reserve's fiscal management efficiency and the justification of lavish expenditures.

At last week's Senate hearing, Powell responded that the related reports are "misleading and inaccurate in many aspects," defending the Federal Reserve's stance on the renovation expenses. However, this response failed to quell the controversy, with Pulte claiming Powell's statements in the hearing "lacked evidence support" and calling for Congress to thoroughly investigate the authenticity of his testimony.

Tensions Between the White House and the Federal Reserve Continue to Escalate

As the U.S. approaches an election year, Trump is constantly pressuring the Federal Reserve to lower the benchmark interest rate to further stimulate economic growth and stock market performance, easing the interest burden on the federal government’s substantial debt.

Previously, Trump publicly stated his desire for the Federal Reserve to lower rates by up to 3 percentage points and repeatedly criticized Powell for being "slow to act." Currently, the Federal Reserve's benchmark interest rate remains in the 4.25%-4.50% range, with the market broadly expecting that the Federal Reserve might initiate a new interest rate cut cycle as early as September.

Powell Faces Political and Public Pressure

With rising U.S. tariff policies and global economic uncertainties, Powell and the Federal Reserve are facing multiple pressures from the White House, Congress, and the market. Debates over the pace and timing of rate cuts continue to intensify.

Analysts point out that Trump's pressure on Powell to resign and Pulte's call for a congressional investigation may further exacerbate tensions between the White House and the Federal Reserve, potentially impacting the Federal Reserve's future monetary policy independence and market confidence.

In the coming weeks, the Federal Reserve will continue to focus on U.S. employment and inflation data performance. Powell and the Federal Reserve are expected to discuss rate adjustments at the policy meeting on July 28-29, with investors and the market closely watching how they respond to political pressure from the White House and Congress.

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