#Trump Pressures Powell# Here’s the latest on former President Trump’s mounting pressure over Fed Chair Jerome Powell:

Trump has repeatedly attacked Powell, calling him a “numbskull” and “one of my worst appointments,” blaming him for keeping interest rates (4.25–4.50%) too high and slowing the housing market .

Talk of firing Powell surfaced, with Trump telling GOP lawmakers he’d “likely” remove him soon—but later publicly said doing so was “highly unlikely unless he’s guilty of fraud,” referencing cost overruns (~$2.5 billion) in Fed HQ renovations .

Legal constraints remain: Under the Federal Reserve Act and recent Supreme Court interpretations, the president can only remove the Fed chair “for cause” (malfeasance or inefficiency), not policy disagreement .

White House pushing a “for‑cause” narrative, using the renovation overruns as potential grounds—but legal experts say it’s flimsy .

Economic fallout is a concern: Markets briefly panicked on firing speculation, with Treasury yields rising and stocks/dollar dropping. Major bank CEOs (Dimon, Moynihan, Solomon, Fraser) publicly defended Fed independence .

Officials preparing a succession plan: Treasury Secretary Scott Bessent has initiated a formal search for Powell’s successor, with names like Bessent, Kevin Warsh, Kevin Hassett, and Fed Gov. Christopher Waller circulating .

Powell is fighting back, requesting an inspector general probe of the renovation project to counter accusations .

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🧭 What’s next?

Federal Reserve’s next meeting is July 29–30. Powell is expected to maintain rates and hold back on comments, awaiting more data .

Markets will closely monitor any shifts in legal justifications for firing Powell, the progress of the HQ renovation inquiry, and what emerges from the G20 and Congressional responses.

Bipartisan pushback is building. Republicans like Sen. Tillis and Sen. Rounds, along with banking CEOs, are warning against politicizing the Fed .

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In short: Trump is ratcheting up his criticisms and laying the groundwork with a “for‑cause” justification, but legal and market resistance—and the Fed’s independence—remain formidable barriers. The focal point now is the upcoming Fed meeting and whether Powell’s defense and broader institutional support hold firm.

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