On the 13th local time, U.S. President Donald Trump once again expressed his desire for Federal Reserve Chairman Jerome Powell to resign.
It is reported that Trump stated on the tarmac of Andrews Joint Base in Maryland that if Federal Reserve Chairman Jerome Powell resigned, it would be a good thing. Trump said, “I hope he resigns; he should resign because he is very unfavorable to the country.”
△U.S. President Donald Trump (photo)
On the same day, White House Economic Advisor Larry Kudlow, during an interview with ABC’s “This Week” program, mentioned that under proper reasons, Trump has the right to fire Federal Reserve Chairman Jerome Powell.
He also accused the Federal Reserve of having “a significant responsibility” for the overspending on its Washington headquarters renovation project. Kudlow stated that whether Powell would be fired due to “overspending $700 million” would largely depend on the response from the Federal Reserve to Russell Ware’s inquiry into the White House and Office of Management and Budget.
Public opinion believes that Kudlow’s statement confirms that the Trump administration is using the high cost of the Fed’s headquarters renovation as a new “breakthrough point,” attempting to replace this Fed chairperson ahead of Powell’s term expiration in May 2026.
△Federal Reserve Chairman Jerome Powell (photo)
Last week, Powell was severely questioned by Kudlow about the “luxurious $2.5 billion renovation project” of the Fed building, even comparing it to the Palace of Versailles in France. In response to Kudlow’s accusations, the Fed countered that this is the first comprehensive renovation of the headquarters built in the 1930s, requiring “exceedingly high pollution and leakage issues” to be addressed. Powell also testified before the Senate in June, stating that the Fed headquarters is “unsafe and not waterproof.”
Notably, Kudlow, who is currently considered one of the potential candidates for the next Fed chairman, is seen as one of the potential candidates for the Fed’s next president. Similarly, Kevin Warsh, another potential candidate for the Fed presidency, mentioned on the same Fox News program on the same day that “the Fed has lost its way and needs a change of leadership.”
However, F伦奇·希尔, the chairman of the House Financial Services Committee and a Republican, emphasized in an interview with CBS on July 13th that
Presidents do not have the authority to remove Federal Reserve Chairs, but Congress will continue to strengthen supervision over the Fed.
Powell was appointed by Trump during his last presidential term. Since Trump took office again in the White House this year, he has frequently pressured the Fed to cut interest rates, repeatedly criticized Powell, and threatened to dismiss him from his position as Fed Chairman. In response, Powell stated,
Trump does not have the legal authority to remove him from office as President, and he will work until the end of his term, which is May 2026. (CCTV Zhao Miao)