Political Pressure on the Fed
In a dramatic week in Washington, the President reiterated his call for Federal Reserve Chair Jerome Powell to resign immediately, echoing statements made on 07/03/2025. Speaking at a cabinet meeting, the President responded to questions about Republican lawmakers accusing Powell of misleading Congress over the costly Federal Reserve building renovation. “He should resign at once,” the President said, repeating his earlier comments on social media.
Stakes for Economic Policy
The President’s criticism comes as Powell urges patience on interest rate cuts, warning that new tariffs could fuel inflation this summer. Meanwhile, the President suggested he would prefer a Fed leader who supports rate reductions, potentially reshaping future economic policy.
Succession and Political Maneuvering
Attention now turns to the shortlist of potential successors for Powell, whose term ends in 05/2026. The Treasury Secretary, along with several notable economists and current Fed officials, are reportedly under consideration. The administration is also weighing scenarios for filling upcoming vacancies, which could influence the Fed’s direction for years to come.
Broader Implications
This standoff highlights persistent tensions between the White House and the Federal Reserve, underscoring the political stakes in U.S. monetary policy as global investors and political observers watch closely.
