Donald Trump has once again stirred the political pot, demanding the resignation of Federal Reserve Chair Jerome Powell—a move that raises intense questions about the independence of America’s central bank.
At a Glance
- President Donald Trump has publicly demanded the immediate resignation of Federal Reserve Chair Jerome Powell.
- Trump’s demand follows his long-standing criticism of the Fed’s interest rate policy, which he believes is hindering economic growth.
- The move raises significant questions about the political independence of the U.S. central bank.
- Under current law, a president cannot remove a Fed chair over a policy disagreement.
A Presidential Demand for Resignation
In an unprecedented public pressure campaign against the nation’s central bank, President Donald Trump has called for the immediate resignation of Federal Reserve Chair Jerome Powell. The demand, issued in a series of posts on his Truth Social platform on Wednesday, July 2, 2025, is the culmination of years of criticism leveled by Trump against the man he originally appointed to lead the institution.
“Instead of keeping rates high, Jerome Powell should resign immediately,” Trump wrote. “The Fed has not done a good job… They raised rates too fast and too high, and they’re not bringing them down.”
Trump calls for Fed Chair Jerome Powell to immediately resign: ‘Too late’ https://t.co/syOwqpK1tT
— FOX Business (@FoxBusiness) July 3, 2025
The Interest Rate Standoff
The core of the conflict is a fundamental disagreement over monetary policy. President Trump has been pushing for the Federal Reserve to lower its key interest rate from the current 4.25-4.5% range, arguing that high rates are stifling economic momentum.
The Fed, under Powell’s leadership, has maintained a more cautious approach, holding rates steady to ensure that inflation remains under control. As reported by The New York Times, Powell has also cited the potential economic impact of the administration’s own tariff policies as a factor that the central bank must consider in its decision-making.
A Question of Fed Independence
Trump’s demand has reignited a fierce debate about the independence of the Federal Reserve from political influence. The central bank is designed to operate as an independent body, making decisions based on economic data rather than the short-term political goals of a presidential administration.
As noted by the BBC, Trump’s ability to act on his demand is severely limited. A 1935 Supreme Court ruling established that a president can only remove a member of an independent federal agency, like the Fed, “for cause”—a standard typically interpreted as illegal conduct or dereliction of duty, not a simple policy disagreement.
While Trump cannot easily fire Powell, his constant public attacks create an unprecedented level of political pressure on an institution whose credibility hinges on its perceived impartiality.
