In a dramatic escalation of tensions between former President Donald Trump and Federal Reserve Chair Jerome Powell, Trump appeared to call for Powell’s resignation following accusations of deceptive testimony to Congress.
The controversy intensified after Federal Housing Finance Agency (FHFA) Director Bill Pulte publicly called on Congress to investigate Powell. Pulte alleged the Fed chair misled lawmakers regarding the costly renovation of the Federal Reserve’s Washington, D.C. headquarters.
Trump, who has long criticized Powell for maintaining interest rates he believes are too high, renewed his attacks this week. On Monday, Trump sent Powell a message comparing U.S. interest rates with those of other countries, claiming Powell was keeping rates “artificially high” and costing the U.S. economy hundreds of billions of dollars.
“Jerome, you are, as usual, too late. You have cost the USA a fortune and continue to do so,” White House press secretary Karoline Leavitt said, reading Trump’s note. “You should lower the rate by a lot. Hundreds of billions of dollars are being lost and there is no inflation.”
On Wednesday, Trump reposted a Bloomberg article on Truth Social that highlighted Pulte’s call for an investigation into Powell. “’Too Late’ should resign immediately!!!” Trump wrote.
Pulte, in a post on X (formerly Twitter), accused Powell of providing misleading testimony to the Senate Banking Committee. He cited Powell’s response to questions about a $2.5 billion renovation of the Federal Reserve’s headquarters, including features such as a private dining room, elevator, skylights, water features, and a roof terrace.
Pulte quoted Sen. Cynthia Lummis (R-Wyo.), who reportedly claimed Powell made several factually inaccurate statements during the hearing. “Chairman Powell needs to be investigated by Congress immediately,” Pulte stated, adding that the alleged falsehoods amounted to malfeasance and could warrant removal “for cause.”
In response, House Judiciary Chair Jim Jordan (R-Ohio) told Bloomberg that while his committee had not yet discussed a probe into Powell, “everything is on the table.”
“Part of our constitutional duty is to do oversight of the executive branch, and, in our committee, we do oversight of the judicial branch as well,” Jordan said.
Powell has not publicly responded to the allegations or Trump’s renewed criticism.
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