Powell refuses Trump’s pressure to resign

Pressure from President Donald Trump mounts on US Fed Chief Powell to resign; however, he has informed several allies that he has no intention of stepping down, emphasizing his determination to withstand the unprecedented presidential campaign aimed at forcing him to cut interest rates.

Powell believes his continued tenure is not just a matter of personal considerations but also a defense of the independence of the nation's most important monetary institution, according to familiar sources. Any move to step down now would be interpreted as yielding to political pressure and threatening the Fed's independence, he said.

Public attack and presidential escalation

Powell', whose term ends in May 2026, has been the target of repeated attacks from the White House over his refusal to cut interest rates despite mounting pressure. This escalation has placed the Fed's usual decisions under unprecedented scrutiny, raising concerns about political interference in monetary policy and its impact on the economy.

In recent weeks, Trump has intensified his attacks, calling Powell "stupid," "boring," and "one of the worst hires I've ever made." He has also implied that Powell is seeking to undermine his presidency and publicly affirmed his desire for him to resign.

Despite all this, Trump's advisors warned that removing Powell could spook markets and push the economy into crisis, so the president chose to publicly pressure and discredit Powell rather than dismiss him directly.

Trump visits the Federal Reserve Headquarters

In an attempt to increase pressure, Trump visited the Federal Reserve headquarters on Thursday, where Powell personally accompanied him on a tour of the $2.5 billion headquarters renovation project. The president raised questions about the project's cost, suggesting that "excessive spending" could be grounds for dismissal.

During the tour, Trump joked that he would "love" for Powell to lower interest rates - drawing some light laughs from reporters and Powell himself.

Powell sticks to his guns, Trump softens rhetoric temporarily

Despite all this, Powell ignores all political pressure and continues to focus on his mission: formulating monetary policy based solely on economic data.

Democratic support and Republican warnings

In contrast, Powell has found support from Democratic officials, despite their previous criticism of him when he raised interest rates during the Biden administration.

They believe Powell's decisions are aimed at protecting the Fed's credibility, even at the expense of his personal well-being.