Over the last few months, the two have been at odds over the reduction of interest rates, and Powell’s latest appearance before Congress has only escalated things. In a Truth Social post on Thursday, Trump said, “Too Late,” should resign immediately!!! Fed Chair Should Be Investigated by Congress, FHFA Head Says.”

Donald Trump demands Powell’s resignation

In a post on blogging platform X on Wednesday, Bill Plute, the director of the Federal Housing Finance Agency, accused Powell of “political bias” and “deceptive testimony” on the renovations at the Federal Reserve headquarters in Washington, DC. Plute also urged Congress to investigate him, with Donald Trump demanding that the Fed Chair step down.

Last month, Trump said he would like to replace Powell with someone interested in lowering interest rates. He told reporters, “I’m going to put somebody that wants to cut rates. There are a lot of them out there.” Even then, he asked the Fed chair to resign and described him as “a stubborn mule and a stupid person” for disapproving of rate cuts.

Lower interest rates tend to boost economic growth. Although they tend to lead to a rise in inflation, something central banks try to avoid. Some experts have also warned that inflation is bound to rise with Trump’s tariffs. On Tuesday, Powell, at the European Central Bank Forum in Portugal, said the Fed is holding off on rate cuts while it evaluates the impact of Trump’s tariffs.

He also claimed they were taking their time to examine the situation. By law, the president can only dismiss the Fed chair “for cause,” broadly seen as applying to misconduct rather than disagreements over monetary policy. The Supreme Court even recently ruled against Trump’s push to fire officials at independent federal agencies, a move most believe the President advocated to target Powell.

Despite the ruling, Trump still plans to replace Powell, having said he has about two to three choices who could take over from him. He recently wrote a letter asking Powell again to lower the benchmark interest rate—currently at 4.25% to 4.5%—by “a lot.”

According to media reports, the Fed’s headquarters project has incurred escalating costs and included several luxury features. In the Senate hearing last week, however, Powell pushed back on those claims, describing the reports as “misleading and inaccurate in many, many respects.”

The post Donald Trump wants Fed Chair Powell to resign immediately first appeared on Coinfea.

Speaking to La Tribune Dimanche, Lombard said, “Donald Trump has hurt the credibility of the dollar with his aggressive moves on tariffs, for a long time.” He also said, “If Jerome Powell is pushed out, this credibility will be harmed even more, with developments in the bond market.”

The warning after Trump reiterated a threat that has been making for years, saying that he wants to fire Jerome Powell, the Fed chair he appointed in 2018. On Thursday, speaking in the Oval Office, the president said, “If I want him out, he’ll be out of there real fast, believe me,” moments after posting online that “Powell’s termination cannot come fast enough!”

White House officials kick against firing Jerome Powell

Investors watched fresh moves in market nerves as the comments circulated. According to people familiar with the discussion, advisors inside the White House have told Trump that breaking with decades of central bank independence could rattle already unstable financial markets.

They also pointed to unanswered legal questions about whether a president can dismiss Jerome Powell without cause. For now, those warnings have tempered action, the people said. Still, the debate is active. National Economic Council Director Kevin Hassett said Friday that Trump was “studying whether he could fire” Powell. The chair’s four‑year term ends in May 2026.

Lombard’s comments marked an unusually direct comment on US domestic policy from a French minister. President Emmanuel Macron has clashed with Trump on Ukraine and trade and has offered French research posts to American scientists whose funding was cut. Tariffs remain a second flash point. This month, the Trump administration imposed 10% duties on some European Union imports.

Now, the immediate question is whether the president will act on his threats. As Trump put it, “If I want him out,” he can move quickly. Whether markets would stay calm, Lombard suggested, is another matter entirely. Powell has not commented publicly on the latest threats as of yet.

The post Jerome Powell’s sack may destabilize the dollar, French Finance Minister warns first appeared on Coinfea.

At 2:00 p.m. Eastern Time, the central bank raised the benchmark interest rate, citing “modest” economic growth in the first quarter. While unemployment is low, the FOMC announcement noted that inflation remains elevated. The committee emphasized that the US banking system is “sound and resilient” despite issues in the industry.

Targeting a 2% inflation rate

The FOMC press release notes that the committee prioritizes bringing inflation rates down to the 2% range. In support of these goals, the target range for the federal funds rate was increased to 5 to 5-1/4 percent.

The announcement caused all major US benchmark stock indexes to jump, alongside a modest spike in precious metals and crypto markets. While some market observers expect the Fed to pivot and cut the benchmark bank rate, the FOMC said the committee still anticipates some “additional policy firming may be appropriate to return inflation to 2% over time.”

The FOMC message does not explain whether or not the Fed will keep the rate the same at the meeting in June.

During the press conference, Fed Chairman Jerome Powell addressed the US debt limit and hoped a resolution would be reached. Consistent with his previous statements, the Fed believes that failure to raise the debt limit could lead to financial disruption. As for the Fed’s next move, Powell stated that the central bank is “prepared to do more if greater monetary policy is warranted.” Investors will be keeping a close eye on the Fed’s future policy decisions.

The post US Federal Reserve announces 10th straight interest rate hike, citing modest economic growth first appeared on Coinfea.