President Donald Trump has renewed his call for Federal Reserve Chairman Jerome Powell to step down immediately, marking the latest escalation in a long-running clash over economic policy and the independence of the central bank.
Trump’s Latest Broadside
On Wednesday, Trump posted on Truth Social:
“‘Too Late’ should resign immediately!!!”
The nickname “Too Late” refers to Trump’s repeated accusation that Powell has been slow to respond to what he views as urgent economic problems, especially the high interest rates Trump blames for worsening the national debt burden.
Earlier this week, Trump wrote:
“Jerome ‘Too Late’ Powell, and his entire Board, should be ashamed of themselves for allowing this to happen to the United States.”
He added:
“If they were doing their job properly, our country would be saving trillions of dollars in interest cost. We should be paying 1% interest, or better!”
These attacks are not new. In the past month alone, Trump has called Powell a “stubborn mule,” accused him of “political bias,” and signed a letter demanding the Fed slash rates without delay.
Trump’s demands gained fresh momentum after Federal Housing Finance Agency Director Bill Pulte accused Powell of lying to Congress about the cost of renovating the Fed’s Washington headquarters.
During Senate testimony, Powell said the $2.5 billion price tag included necessary repairs, such as elevators and marble fixtures, and that some controversial upgrades were part of outdated plans. Pulte disagreed, calling the testimony “deceptive” and urging Congress to investigate whether Powell deliberately misled lawmakers.
Trump quickly seized on Pulte’s remarks, linking to news coverage and framing it as further evidence that Powell should be removed.
Trump Wants Rates Lower
Trump has consistently argued that the Fed’s refusal to cut interest rates has needlessly increased borrowing costs and hampered economic growth. He believes lowering rates to 1% or less would save the country trillions and boost investment.
Powell, however, has held off on cuts, saying he wants to see how Trump’s own tariff policies affect inflation over time. At a panel this week, Powell said the Fed could have acted sooner on rates if it weren’t for “significant upside risks to inflation,” pointing to tariffs as a central factor.
Many of Trump’s allies cheered the renewed calls for Powell’s departure. Rep. Jim Jordan, chair of the House Judiciary Committee, told Bloomberg that lawmakers would examine whether a formal investigation into Powell was warranted.
Others argued that Powell has long ignored the will of elected leaders. Conservative commentator Mark Levin posted:
“Powell has been an obstacle to economic freedom since day one. The Fed’s independence doesn’t mean immunity from accountability.”
Skeptics Warn of Dangerous Precedent
Critics, however, warned that Trump’s pressure campaign threatens the very principle of an independent Federal Reserve.
Economist Diane Swonk told CBS News:
“If presidents can just bully the Fed chair out of office, it undermines confidence in America’s commitment to sound monetary policy.”
Legal scholars have also pointed out that the President likely cannot fire Powell outright without proving “serious cause,” such as misconduct or gross inefficiency. Even then, it could trigger a lengthy court battle that drags into the election season.
Powell has made clear he has no plans to resign. His current term as Fed chair ends in May 2026, and he remains a governor until 2028. For now, he continues to signal that the Fed will be patient with rate cuts, regardless of political pressure.
Meanwhile, Trump shows no sign of letting up. With the economy and interest rates looming large in the 2026 election narrative, the feud between the president and the Fed chair looks set to intensify further.
