US President Donald Trump has called for the chair of the Federal Reserve to quit "immediately", in an escalation of his attacks on Jerome Powell. "'Too Late' should resign immediately!!!", Trump said in a post on hisTruth Social platform. He also included a link to a news article about a US federal housing regulator calling for Mr Powell to be investigated over his testimony about renovations to the central bank's Washington headquarters. Trump nominated Mr Powell to be the Fed chair during his his first term. Since then, he has repeatedly criticised him for not cutting interest rates but it's unclear whether the president has the authority to remove him from the post. Despite the president's continued criticism of Mr Powell, he said earlier this year that had "no intention of firing him". Trump wants the Federal Reserve to lower interest rates to help boost economic growth. Mr Powell said on Tuesday that the Fed would have cut rates already had it not been for the impact of the Trump's tariff policies. When asked during a meeting of central bankers in Portugal whether US rates would have been cut this again this year if the administration had not announced its plan to sharply increase tariffs on countries around the world Mr Powell responded, "I think that's right." The US Federal Reserve declined to comment about Trump's remarks when contacted by the BBC. Ahead of Trump's return to the White House at the start of this year, Mr Powell said he would not step down if the president asked him to and that it is "not permitted under law" for the White House to force him out. Board members of independent federal agencies like the Federal Reserve can only be forced out before their terms expire "for cause," according to a landmark US Supreme Court ruling in 1935. However, Trump has often challenged political norms, including firing some independent regulators, actions that have been contested in court. On Wednesday, Federal Housing Finance Agency director Bill Pulte, who has previously strongly criticised Mr Powell, called for him to be investigated. "I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed 'for cause,'"he posted on X. Last week, Mr Powell told the Senate that reports about soaring costs and expensive features at the Fed's headquarters were "misleading and inaccurate in many, many respects." Follow the twists and turns of Trump's second term with North America correspondent Anthony Zurcher's weeklyUS Politics Unspunnewsletter. Readers in the UK cansign up here. Those outside the UK cansign up here.
Trump calls for US central bank head to quit immediately
TruthLens AI Suggested Headline:
"Trump Calls for Federal Reserve Chair Jerome Powell's Immediate Resignation"
Bbc News
7.6
TruthLens AI Summary
US President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, calling for his resignation 'immediately' through a post on his Truth Social platform. This demand comes in light of a recent article discussing a call from a US federal housing regulator for an investigation into Powell regarding his testimony about renovations to the Federal Reserve's Washington headquarters. Trump, who appointed Powell during his first term, has expressed dissatisfaction with Powell's reluctance to cut interest rates, a move Trump believes is necessary to stimulate economic growth. Despite his harsh rhetoric, earlier this year, Trump indicated he had 'no intention of firing' Powell. The president's ongoing criticism raises questions about his authority to remove Powell from his position, as it remains unclear whether he has the legal power to do so without just cause.
In response to Trump's remarks, Powell has pointed out that the Federal Reserve would have likely lowered interest rates by now if not for the adverse effects of Trump's tariff policies. During a recent meeting of central bankers in Portugal, Powell noted that the administration's plans to increase tariffs on various countries had a significant influence on the Fed's decision-making process regarding interest rates. The Federal Reserve has chosen not to comment on Trump's latest statements. Powell has previously stated that he would not resign if asked by the president, citing legal protections that prevent the removal of independent agency heads without just cause, as established by a landmark Supreme Court ruling in 1935. Additionally, Federal Housing Finance Agency director Bill Pulte has called for Congress to investigate Powell for alleged political bias and misleading testimony, further complicating the situation surrounding the Fed chair's position as the political landscape continues to evolve during Trump's second term in office.
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