Trump Powell resignation 2025 calls grow louder as Trump slams the Fed Chair over inflation, high rates, and a renovation scandal. Is Scott Bessent the next in line?
Table of Contents
Trump Powell Resignation 2025: Trump Demands Fed Chair Step Down Over Rate Drama
Trump Powell resignation 2025 demands took center stage again after Trump, during a July 8 Cabinet meeting, directly told reporters that Jerome Powell “should resign immediately.” The former president’s remarks echo his prior statements on Truth Social and reflect his growing frustration over the Fed’s rate policies and controversy surrounding the central bank’s headquarters renovation.
“He Should Go Now”
Trump told reporters, “He should resign immediately,” when asked whether Powell misled lawmakers about Fed renovations. The issue stems from claims that Powell gave misleading testimony to Congress over the cost and scope of the upgrades. Trump emphasized he wants someone in the role who will cut interest rates quickly, suggesting Powell is dragging his feet at a time when inflation risks are rising.
Bessent Leads Shortlist as Trump Hints at Replacement
The Trump Powell resignation 2025 conversation quickly pivoted to who might replace Powell. During the meeting, Trump pointed across the table at Treasury Secretary Scott Bessent and said, “I like you better.” That one-liner has launched serious speculation that Bessent may be the frontrunner if Powell exits early or is not reappointed in 2026.
Other names being floated by White House sources include:
- Kevin Warsh (Former Fed Governor)
- Kevin Hassett (Economic Council Director)
- David Malpass (Former World Bank Head)
- Christopher Waller (Current Fed Governor)
Trump said he’s narrowed the list down to “two or three top choices.”
Fed Testimony Sparks GOP Outrage
During a Senate hearing last month, Powell defended the Fed’s renovation plan, calling media reports “misleading and inaccurate.” But Republican lawmakers remain unconvinced and may push for further inquiry.
As part of the Trump Powell resignation 2025 pressure campaign, several conservative senators are now considering formal investigations into the Fed’s financial management practices.
Two Scenarios to Replace Powell
Trump and Bessent are reportedly considering two options:
- Appoint a new Fed governor in January 2026, who later becomes Chair.
- Wait until Powell’s Chair term ends in May and appoint someone directly, even if it means a shorter tenure.
Bessent told Fox News, “We get to hopefully fill two seats next year,” referring to Powell’s Chair seat and the upcoming departure of Governor Adriana Kugler.
Why Trump Wants Powell Out
Trump argues that Powell failed to act fast enough on interest rates, especially leading into last year’s presidential election. “He was cutting rates like crazy before the election, trying to help the Democrats,” Trump claimed. He believes a quicker drop in rates could have countered inflation and improved credit conditions for households.