• Trump demands Federal Reserve Chair Jerome Powell resign "immediately".
• The call follows accusations from a housing regulator of Powell's deceptive testimony.
• Trump's criticism centers on Powell's handling of interest rates impacting economic growth.

US President Donald Trump has dramatically escalated his rhetoric against Federal Reserve Chair Jerome Powell, calling for him to resign "immediately" amid ongoing tensions regarding interest rate policies. Trump referred to Powell as "Too Late" and expressed his frustration via a post on Truth Social, noting a request from Federal Housing Finance Agency head Bill Pulte for Congress to investigate Powell over his testimony regarding renovations at the Fed's headquarters, which Pulte labeled "deceptive" and indicative of "political bias" according to BBC, Al Jazeera, and TRT Global.

Pulte's statements arose after reports highlighted the need for an investigation into Powell's actions, including his claims regarding the costs and nature of planned renovations that Trump characterized as extravagant. Powell, previously nominated by Trump, has faced criticism for delaying interest rate cuts, which Trump argues are crucial for economic stimulation. During a panel discussion, Powell contended that economic uncertainty stemming from Trump's tariffs has heavily influenced the Fed's decision-making process, as he noted, "we essentially took a wait-and-see approach" to rate cuts because of tariffs, according to Business Insider and HuffPost.

Trump argues that the Fed's current interest rate of 4.25% to 4.5% is stifling economic growth and has demanded significant reductions to facilitate borrowing. "You are, as usual, ‘too late,’” Trump wrote in a note addressed to Powell. His persistent calls for Powell's resignation have raised concerns about the independence of the Federal Reserve, especially with Trump's acknowledgment of considering potential replacements for Powell, whose term lasts until May 2026, according to BBC and HuffPost.

The dynamics surrounding Powell's leadership have been punctuated by Trump's vocal criticism, suggesting an underlying tension regarding U.S. economic policy. Despite the president’s demands, existing U.S. law restricts the president's ability to remove the Fed chair unless there is a substantial cause, a fact underscored by Supreme Court precedents that affirm the autonomy of the Federal Reserve, as noted by Al Jazeera and Business Insider.