The can you buy meme coins on coinbaseWhite House has intensified scrutiny over Federal Reserve Chair Jerome Powell's congressional testimony, with President Trump declaring Powell should "resign immediately" if investigations confirm allegations of deception regarding the Fed's controversial renovation project.
During Tuesday's Cabinet meeting, Trump responded sharply when questioned about the escalating Fed renovation controversy. "We need leadership that'll bring rates down," the President stated, reiterating his long-standing criticism of Powell's monetary policy approach. Multiple sources indicate the administration has begun vetting potential successors ahead of Powell's 2026 term expiration.
The renovation dispute centers on ballooning costs at the Fed's Eccles Building headquarters, with Federal Housing Finance Agency Director Bill Pulte alleging Powell provided Congress with misleading testimony about the project's financial details. Pulte's public call for an investigation gained presidential endorsement when Trump amplified the demand through social media channels.
Monetary Policy Tensions Compound Scrutiny
This controversy emerges against ongoing friction between the administration and central bank over interest rate policy. The Fed maintained its benchmark rate at 4.25%-4.5% in June, despite Powell acknowledging inflationary conditions might typically warrant reductions. The chair cited trade policy uncertainties as justification for maintaining current levels.
Trump's latest remarks continue his pattern of unconventional public pressure on Fed leadership. The President has previously vacillated between threatening Powell's removal and asserting he wouldn't dismiss the chair, while consistently criticizing rate decisions as detrimental to economic growth.
Succession Speculation Intensifies
As Powell faces mounting political pressure, Washington circles increasingly discuss potential successors. Treasury Secretary Scott Bessent emerged as a speculated candidate during recent media appearances, though he publicly expressed satisfaction with his current role while maintaining deference to presidential discretion.
Bessent's financial sector background and demonstrated ability to advance administration priorities internationally - including during sensitive trade negotiations - position him as a plausible contender should Trump seek to reshape Fed leadership. Other candidates reportedly under consideration include several business executives with ties to the administration.
The White House's increasingly assertive posture toward the traditionally independent central bank signals potential structural changes in the Fed's relationship with the executive branch. With nearly a year remaining in Powell's term, this developing situation warrants close observation for implications regarding monetary policy direction and institutional norms.