Trump says Powell should 'resign immediately if Congress misled'

President Donald Trump said Jerome Powell should “resign immediately” if allegations from critics that the Federal Reserve chairman misled lawmakers about renovations at the central bank’s headquarters proved true. 

Trump reiterated his criticism of the Fed chair in a Cabinet meeting Tuesday, calling Powell “terrible,” and telling reporters that deceiving Congress would be grounds for a swift exit. 

“Then he should resign immediately,” Trump said. “We should get somebody in there that’s going to lower interest rates.”

Trump has assailed Powell over the bank’s position to hold rates steady, saying last month that he would choose a successor who will cut borrowing costs.  

That criticism has been joined by many of his officials, including Bill Pulte, the head of the Federal Housing Finance Agency, who has called for Congress to investigate Powell, alleging that his testimony to lawmakers about ongoing renovations at the bank’s headquarters was “deceptive.” Pulte has also called for the bank chief’s resignation, which Trump amplified on social media. 

Media reports have asserted the Fed’s renovation project of its headquarters has seen swelling costs and includes several extravagant features. During a recent Senate hearing, Powell disputed some of the reporting, calling it “misleading and inaccurate in many, many respects.” 

Trump has openly mused at times about dismissing the Fed chair, often sending conflicting signals about Powell’s future. He has written that “Powell’s termination cannot come fast enough!” before saying that he has “no intention of firing him.”  

In June, Trump said he had three to four candidates in mind to replace Powell once his term is up in May 2026 and said that he would choose a successor who would want to cut interest rates — a move that would strike at the heart of the central bank’s independence. 

Trump has belittled Powell over the bank’s decisionmaking, mocking him as a “stubborn mule and a stupid person” for not backing rate cuts. 

The US central bank left rates unchanged in June in a range of 4.25%-4.5%, where they’ve been since December. Powell told lawmakers last month that the Fed would probably be cutting rates by now, based on declining inflation, if not for the uncertain outlook for future prices because of tariffs. Powell has cautioned that there is no need to rush into any rate changes.