Trump Demands Jerome Powell’s Immediate Resignation!

• Donald Trump launches fresh attack on Fed Chair Jerome Powell, calling for his immediate resignation
• Political pressure to cut interest rates is intensifying ahead of the 2026 elections
• Raises serious concerns over the independence of the U.S. central bank

Trump vs Powell: A Renewed Clash

On Wednesday night, President Donald Trump escalated his public criticism of Federal Reserve Chairman Jerome Powell, demanding that he “resign immediately” via a post on Truth Social.

🔴 Trump’s post read:

“‘Too late.’ Must resign immediately!!!“

This was a clear reference to what Trump considers the Fed’s delay in cutting interest rates.

He also shared an article by Bill Pulte, head of the Federal Housing Finance Agency, who called for a Congressional investigation into Powell, claiming the Fed Chair’s recent testimony on rebuilding the Fed’s headquarters was “misleading.”

Educational Section: What Is Central Bank Independence?

Central bank independence means that a country’s monetary authority, such as the Federal Reserve — makes key decisions (like setting interest rates and controlling inflation) without direct political influence.

Why is it important?

• ✅ Ensures trust in markets
• ✅ Helps fight inflation effectively
• ✅ Supports long-term economic stability

Any attempt to politicize monetary policy can erode the Fed’s credibility and lead to financial instability.

Analysis: Caught Between Politics and Inflation Risk

Trump has repeatedly urged Powell to cut rates by 2–3%, blaming him for weak growth and market sluggishness.

But Powell and other Fed officials have warned that Trump’s proposed tariffs could fuel inflation, making aggressive rate cuts unwise.

📉 Even more troubling are reports that Trump may pre-announce Powell’s replacement, which could:

• Undermine Powell’s authority
• Shake market confidence
• Spark volatility in bonds, stocks, and currency markets

If political pressure continues to escalate, the Fed may face a painful choice between defending its independence or yielding to election-year demands, a rare and dangerous scenario in U.S. central banking history.

Read More: Trump Family-Backed American Bitcoin Raises $220M

Potential Market Impact: What Investors Should Watch

🔍 Investor Insight:
Watch for official statements from Powell and Fed governors, their tone and defense against political interference will likely guide interest rate expectations through the rest of 2025.

Final Thoughts: Will the Fed Hold the Line?

The Fed is facing one of its toughest challenges in years, balancing economic stability with growing political heat.

✅ If it upholds independence and focuses on inflation data, credibility will remain intact.
❗ If it caves under pressure, markets may lose trust in U.S. monetary policy for years to come.

In either case, this developing story is one that investors (and history books) won’t ignore.

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