Key Takeaways
- President Trump repeated his call for Jerome Powell to resign as Federal Reserve chair.
- Controversy surrounds Powell over alleged misleading statements about Fed building renovations.
- Treasury Secretary Scott Bessent and several others are considered as potential successors to Powell.
President Trump again called for Federal Reserve Chair Jerome Powell to resign immediately, repeating a demand he made the previous week and indicating he would support a congressional investigation into Powell’s conduct.
Responding to a reporter’s question during a Cabinet meeting in Washington on Tuesday, Trump stated:
“He should resign immediately.”
Congress
He added that it would be acceptable if Congress investigated Powell over allegations from Republican lawmakers that Powell misled Congress regarding renovations at the Fed’s headquarters. T
rump criticized Powell, saying
“I think he is terrible.”
Powell had previously addressed these accusations during Senate testimony last month, stating that media reports about the renovation project were “misleading and inaccurate in many, many respects.”
November election
Instead of commenting further on Powell’s testimony, Trump pivoted to accuse Powell of aggressively lowering interest rates before last November’s presidential election, implying this was intended to benefit Democratic opponents.
Trump said:
“He was trying to get them in, I guess.”
Scott Bessent
Trump also expressed a preference for Treasury Secretary Scott Bessent, who is reportedly on the administration’s shortlist to succeed Powell as Fed chair when his term expires in May 2026.
Other possible candidates include former Fed governor Kevin Warsh, National Economic Council director Kevin Hassett, former World Bank president David Malpass, and current Fed governor Christopher Waller.
Bessent mentioned that the administration is considering appointing a new Fed board member to fill a 14-year term beginning with the scheduled departure of governor Adriana Kugler in January, with the potential for that individual to become chair after Powell’s departure. Alternatively, the administration could appoint a new chair directly in May, though that would be for a shorter two-year term.
Powell’s term as a Fed board member runs until 2028, and he has not indicated whether he would remain after his tenure as chair ends.
