White House Investigation Fuels Speculation Trump May Oust Fed Chair Powell

Rumors about Federal Reserve Chair Jerome Powell's potential resignation have stirred significant speculation, especially after the head of the U.S. Federal Housing Finance Agency expressed support for such a move. While President Donald Trump has publicly criticized Powell and suggested he should step aside, he has officially pledged not to remove Powell before his term ends next spring. However, a White House investigation led by Budget Director Russ Vought into $2.5 billion cost overruns on the Fed's headquarters renovation has escalated tensions, fueling speculation that Trump might seek to remove Powell for cause, accusing him of mismanagement and misleading Congress. This investigation into administrative issues rather than monetary policy marks a serious challenge to Powell and could threaten the Federal Reserve's independence, a cornerstone praised by lawmakers across party lines. Experts warn that any attempt to oust Powell would likely unsettle Wall Street and raise concerns about political interference in monetary policy. The Supreme Court has indicated that the president cannot summarily dismiss central bankers, but the ongoing probe represents a new legal and political pressure on Powell's leadership.