In the latest escalation in the feud between President Donald Trump and Federal Reserve Chair Jerome Powell, the president appeared to call for Powell to resign after the head of the Federal Housing Finance Agency (FHFA) alleged Powell gave “deceptive” testimony to Congress.
Trump has expressed frustration with Powell for months for refusing to lower the Fed’s interest rates, which he has said was costing the U.S. a “fortune.”
On Monday, Trump sent a note to Powell highlighting how other countries around the world have lower interest rates compared to the U.S., and he continued accusing Powell of keeping rates “artificially high.”
“‘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 Monday, reading Trump’s note to Powell. “‘You should lower the rate by a lot. Hundreds of billions of dollars are being lost and there is no inflation.'”
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On Wednesday, Trump reposted a Bloomberg article on the FHFA head’s call for an investigation into Powell to his Truth Social account.
Trump wrote, “‘Too Late’ should resign immediately!!!”
Earlier Wednesday, FHFA Director Bill Pulte posted a statement on X, calling for Congress to investigate Powell’s alleged deceptive testimony, which he said was sufficient grounds for removal.
“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,’” Pulte wrote.
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In testimony to the Senate Banking Committee last week, Powell dismissed concerns about irresponsible expenses renovating the Fed headquarters in Washington, D.C.
Pulte quoted Sen. Cynthia Lummis, R-Wyo., who he said claimed Powell “made a number of factually inaccurate statements to the [Senate] Committee regarding the Fed’s plush private dining room and elevator, skylights, water features and roof terrace.”
“Jerome Powell’s $2.5B Building Renovation Scandal stinks to high heaven, and he lied when asked about the specifics before Congress. This is nothing short of malfeasance and is worthy of ‘for cause,’” Pulte wrote. “Chairman Powell needs to be investigated by Congress immediately.”
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Speaking with Bloomberg on Wednesday, House Judiciary Chair Jim Jordan, R-Ohio, responded to Pulte’s call for an investigation of Powell, saying, “We haven’t discussed that specifically,” but “everything is on the table.
“We’ll take a look at that. 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.”
A representative for the Fed declined to comment.
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