Federal Reserve Chairman Jerome Powell has privately assured allies, including Republican Senator Mike Rounds, that he will not resign despite mounting pressure from former President Donald Trump.
Trump has launched a personal campaign against Powell, accusing him of undermining his presidency and refusing to cut interest rates.
During a recent visit to the Fed’s $2.5 billion renovation project, Trump reportedly joked, “I’d love you if you lowered interest rates,” while suggesting the project’s cost could justify Powell’s dismissal, according to news reports.
Despite these attacks, Powell, whose term runs through May 2026, remains firm, insisting that resigning now would endanger the independence of the Federal Reserve. Sources close to him say he is committed to making policy decisions based on economic data, not political pressure.
Democratic leaders have expressed support for Powell, acknowledging his efforts to uphold the institution’s credibility, even amid public humiliation.
Some moderate Republicans, meanwhile, warn that Trump’s interference could damage the Fed’s integrity.
The Federal Reserve Board is set to meet Tuesday and Wednesday, with expectations to hold interest rates steady.
The meeting coincides with the release of key economic reports, including GDP growth, employment data, and inflation figures. Early forecasts suggest a modest economic rebound, though core inflation may show slight upward movement.
