Trump Demands Powell’s Resignation Amid Fed Rate Stance

Breaking news: President Trump is reportedly preparing to replace Federal Reserve Chair Jerome Powell by the end of the year, according to Treasury Secretary Scott Bessent. Bessent stated that a strong list of candidates is being compiled for the position.

Context: This progress follows a period of intense criticism from President Trump directed at Powell and the Federal Reserve. Trump has publicly attacked Powell’s decisions on interest rates and the renovation of the Fed’s headquarters, which critics have deemed poorly managed. Trump has previously explored the possibility of removing Powell from his post, tho he later indicated he would wait until the end of Powell’s term in May.

The Federal Open Market Committee (FOMC), chaired by Powell, is responsible for setting interest rates. the FOMC comprises the seven members of the Fed’s Board of Governors and five presidents of regional Federal Reserve banks. The committee elects its chair and vice chair annually.

Following the FOMC’s recent decision to maintain interest rates, Powell indicated that the Fed is currently in a stable position, citing ongoing uncertainties related to the economic impact of Trump’s tariffs. Investors are now anticipating two interest rate cuts by the end of the year. Notably, two Fed governors, Christopher Waller and Michelle Bowman, dissented from the recent decision, marking the first time as 1993 that two board members have voted against the majority.

In related news, the Brazilian goverment, under President Lula, is actively working on strategies to counter the tariffs imposed by the Trump management.