Trump says Powell should resign immediately from Federal Reserve leadership position over economic missteps
President Donald Trump slammed Federal Reserve Chair Jerome Powell on Sunday, saying it would "be a great thing" for the U.S. if he were to step down, adding, "he’s very bad for the country."
Trump has repeatedly threatened to fire Powell, who he appointed to the role in 2017, over the central bank not cutting interest rates according to his demands.
While speaking to reporters on Sunday, Trump was asked about a new bill that would eliminate no capital gains tax on home sales, which will help people who cannot afford to pay the capital gains on their home that they have owned for a long time.
Trump said the bill will be "a great incentive for a lot of people" who need the money.
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The reporter then interjected and said between the bill and Powell stepping down, that could boost home sales.
"Well, I think if Jerome Powell stepped down, it would be a great thing. I don’t know that he’s going to, but he should," Trump said. "Jerome Powell has been very bad for our country. We should have the lowest interest rate on Earth, and we don’t. He just refuses to do it."
The president then said Powell is spending $2.5 billion to rebuild the Federal Reserve building yet does not look like the kind of guy who wants to spend $2.5 billion.
"I don’t know what he knows about building, but you talk about cost overrun," Trump said, noting that Powell got the project approved, and began working on it during the Biden administration.
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Speaking on the economy, Trump said there is no inflation and cash is pouring into the country, which out of 71 economists, only two of them predicted the outcome correctly: Trump and another person he believed was from Wharton.
"I can tell you, I don’t need 5,000 people working for me behind the scenes like Jerome Powell, to tell him what he should say once a month, because they got it wrong. The Fed got it wrong," Trump said. "I call him ‘too late.’ He’s always late.
"Every point costs us $360 billion," the president continued. "Think of that. And we should be at three points. That’s almost a trillion dollars… We’ll see what happens."
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He then turned his attention back to the reporter and a statement the reporter made that Powell was going to quit.
"I mean, you’re telling me he’s going to quit. I hope he quits," Trump said. "I don’t know if he’s gonna quit, but he should because he’s been very bad for the country."
The Federal Reserve's renovation of its two main office buildings was initially estimated to cost $1.9 billion in 2019, though the estimated cost rose to nearly $2.5 billion due to "significant increases" in the cost of wood, steel, cement and other construction materials per budget documents The Wall Street Journal cited in a 2023 report on the subject.
Federal law governing the Federal Reserve System gives the central bank the authority to build facilities for its use, as well as to maintain, enlarge or remodel those facilities – and also gives the Fed the sole control of those buildings and the space inside.
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Funding used in the Fed's operations is derived from the interest it generates managing the money supply, which allows it to be essentially self-funded without relying on annual appropriations from Congress like other agencies.
FOX Business’ Eric Revell contributed to this report.