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 are proven true.

Trump repeated his criticism of the Fed chairman at a Cabinet meeting Tuesday, calling Powell "terrible," and telling reporters that deceiving Congress would be grounds for a quick exit.

"Then he should resign immediately," Trump said. "We have to put somebody in there who will lower interest rates." Trump has attacked Powell over the bank's position on keeping interest rates steady, saying last month that he would pick a replacement who would cut borrowing costs. The criticism has been echoed by many of his officials, including Bill Pulte, the head of the Federal Housing Finance Agency, who has called on 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 to resign, which Trump has amplified on social media. Media reports have asserted that the Fed's headquarters renovation project has seen cost overruns and includes several wasteful features. During a recent Senate hearing, Powell disputed some of the reporting, calling it "misleading and inaccurate in many, many ways." Trump has publicly mused several times about firing the Fed chairman, often sending conflicting signals about Powell's future. He has written that "Firing Powell can't come soon 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 when his term ends in May 2026 and said he would pick a successor who would cut interest rates — a move that would strike at the heart of the central bank's independence. Trump has disparaged Powell over the bank's decision-making, calling him a "stubborn ass and a fool" for not supporting rate cuts.

Trump Has Already Made the Next Fed Chair's Job Harder The U.S. central bank left interest rates unchanged in June in a range of 4.25% to 4.5%, where they have been since December. Powell told lawmakers last month that the Fed would probably cut rates now, based on declining inflation, if not for the uncertain outlook for future prices due to tariffs. Powell has warned that there is no need to rush into any interest rate changes.(alg)

Source: Bloomberg