The Trump administration appears to be ramping up pressure on Jerome Powell to step down as Federal Reserve chair, with one federal agency issuing a statement voicing support for his departure.
President Donald Trump, who nominated Powell as Fed chair in 2017, has frequently voiced dissatisfaction with the Fed's recent "wait-and-see" approach to lowering interest rates, calling instead for rates to quickly drop from 4.25% to 4.5% to as low as 2.25%.
In June, Trump called Powell a "stupid person" who has "done a poor job," adding that he's called the Fed chair "every name in the book" to try to get him to cut rates. He added, "Nothing works."
Powell has also come under fire from Office of Management and Budget Director Russell Vought, who suggested Powell has "grossly mismanaged the Fed" and misled Congress about an "ostentatious" headquarters remodel. Powell has previously defended the project, calling some of the more extravagant descriptions "misleading and inaccurate" during a June testimony before the Senate Banking Committee.
The administration's pressure tactics appeared to continue July 11, when William Pulte, director of the Federal Housing Finance Agency and chairman of the Board of Fannie Mae and Freddie Mac, said in a statement Powell's resignation would be "the right decision for America, and the economy will boom."
Pulte referenced "reports" that Powell is "considering resigning." When asked for confirmation, the Fed declined to comment but directed USA TODAY to the many times Powell has said he intends to serve his term, set to end May 2026.
Pulte's statement comes ahead of the central bank's July 29-30 meeting. The CME FedWatch, which tracks the likelihood of a rate cut based on futures prices, says there's a roughly 93% chance rates hold steady at 4.25% to 4.5% after the meeting.
In June, the Fed held interest rates steady for its fourth straight meeting and kept its forecast for two cuts in 2025. Officials project they'll lower rates by a half percentage point this year to a range of 3.75% to 4%.
While lower rates would juice the economy and help reduce federal debt interest payments, Powell has said the Fed wants to see how tariffs impact inflation before cutting rates.
Trump in June said he's already looking for Powell's replacement, but he may have to wait if Powell doesn't step down voluntarily. A May Supreme Court ruling downplayed Trump's ability to fire Powell, noting that the Fed is "a uniquely structured, quasi-private entity" and unlike other independent agencies with members subject to terminations decided by the president.