President open to congressional probe into Fed chair’s actions
President Donald Trump on Tuesday repeated his demand that Federal Reserve Chairman Jerome Powell resign, suggesting that he would support a congressional investigation into Powell’s handling of Fed headquarters renovations. Speaking during a Cabinet meeting in Washington, Trump reiterated comments he made last week on Truth Social, declaring, “He should resign immediately.”
When asked whether Republican lawmakers should investigate Powell over alleged misleading testimony to Congress about building renovation expenses, Trump responded, “It’s OK with me; I think he is terrible.” The controversy stems from Powell’s Senate testimony in which he dismissed media reports on the cost and features of the renovations as “misleading and inaccurate in many, many respects.”
Trump targets Fed policy ahead of election year
Trump once again criticized Powell for not lowering interest rates, blaming him for maintaining a cautious stance despite rising tariff risks. “I want someone who will lower rates,” he said, accusing Powell of trying to aid Democrats with aggressive rate cuts before last year’s election. The president made no mention of Powell’s broader economic guidance or inflation concerns, instead focusing on political implications.
Trump also made a pointed comment toward Treasury Secretary Scott Bessent during the meeting, saying, “I like you better,” in a remark that signals his growing preference for Bessent as a possible Powell successor. Bessent is now reportedly among Trump’s top choices to take over the Fed when Powell’s term ends in May 2026.
Succession plans and political maneuvering
According to administration insiders, other names under consideration for the role include Kevin Warsh, Kevin Hassett, David Malpass, and current Fed governor Christopher Waller. Trump said last week he has “two or three top choices” and hinted that he may nominate someone to fill a 14-year seat on the Fed board in January, potentially grooming them for the chairmanship once Powell steps down.
Powell’s term as chair ends in May, but he remains a member of the board of governors until 2028. It remains unclear whether he will resign from the board entirely if not reappointed as chair. Bessent acknowledged two possible paths: appointing a new governor in January to take over as chair in May, or naming a new chair directly when Powell’s term expires — although that would only be a two-year term under current rules.
The escalating rhetoric underscores the political tension surrounding the central bank’s independence and policy direction as Trump seeks greater influence over monetary decisions heading into the 2026 election cycle.
