venerdì 11 luglio 2025

Federal Reserve: Potential Resignation of Fed Chair Jerome Powell


Jerome Hayden Powell, known as JPow, is an American lawyer and banker, chairman of the Federal Reserve System since February 5, 2018. Appointed by Donald Trump, he is the sixteenth president.
 

Survey Note: Detailed Analysis of News on Fed Chair Jerome Powell

IntroductionThis note provides a comprehensive analysis of recent news surrounding Jerome Powell, the Chair of the Federal Reserve, as of July 11, 2025. The focus is on political pressures, potential resignation, and related discussions, particularly in the context of the user EquaCoin’s interests, as inferred from previous interactions. The analysis is based on recent news articles and social media activity, aiming to offer a detailed overview for readers interested in economic and financial policy.Background on Jerome PowellJerome Powell has been the Chair of the Federal Reserve since February 2018, with his current term set to end in early 2026. His role involves setting monetary policy, including interest rates, to manage inflation and economic growth. In 2025, Powell’s leadership has come under scrutiny, particularly from the Trump administration, amid a backdrop of economic recovery and political tension.Recent News and DevelopmentsAs of July 11, 2025, several key news items have emerged regarding Powell:
  1. Potential Resignation:
    • A statement from William J. Pulte, Chairman of the Board of Fannie Mae and Freddie Mac, released on July 11, 2025, expressed encouragement over reports that Powell is considering resigning. Pulte believes this would be “the right decision for America, and the economy will boom.” This statement, however, is based on reports and not a confirmed action from Powell himself. The Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, provides context, noting their role in funding over $8.5 trillion in U.S. mortgage markets, suggesting Pulte’s view might reflect broader housing sector interests.
    • Source: FHFA - Statement on Powell's Potential Resignation
  2. Criticism from the Trump Administration:
    • President Donald Trump and his administration have been vocal critics of Powell. Russell Vought, the Office of Management and Budget (OMB) Director, stated on July 10, 2025, that Powell “has grossly mismanaged the Fed.” This criticism is tied to a costly renovation project of the Fed’s headquarters, now estimated at $2.5 billion, which is $700 million over the initial cost. Vought described the project as “ostentatious,” comparing it to the Palace of Versailles, which would cost $3 billion in today’s dollars, and suggested it costs $1,923 per square foot, double the cost for typical historic federal buildings.
    • Vought also accused Powell of misleading Congress during a testimony on June 25, 2025, before the Senate Banking Committee, and requested responses to 11 questions within seven business days, indicating formal scrutiny.
    • Source: CNBC - Trump's Budget Chief Criticizes Powell
  3. Details on the Renovation Controversy:
    • The renovation project includes plans for rooftop terrace gardens, VIP private dining rooms, elevators, water features, and premium marble, which Vought and others claim were not approved by the National Capital Planning Commission (NCPC), potentially violating the National Capital Planning Act. Powell, in his testimony, denied these specifics, stating, “There’s no VIP dining room. There’s no new marble. There are no special elevators. There are no new water features. There’s no beehives and there’s no roof terrace gardens,” calling some descriptions “misleading and inaccurate.”
    • The project’s cost overrun and features have been highlighted in budget reports, with the Fed’s 2023 budget acknowledging jumps in costs, and plans are detailed in NCPC documents.
    • Source: CBS News - Trump Official Criticizes Powell's Renovation
  4. White House Pressure Tactics:
    • The White House has escalated pressure by involving the NCPC, with Trump appointees like Will Scharf, James Blair, and Stuart Levenbach requesting a full review and site visit of the Fed’s project. James Blair cited a professor implying Powell lied under oath, a narrative common in GOP and conservative media circles. Vought’s letter, posted on X, accused the Fed of non-compliance, adding to the political pressure.
    • Republicans see this as a potential reason for Trump to fire Powell for cause, avoiding a legal crisis over removing the head of an independent federal body, as noted in Politico. Powell dismissed opulence allegations in his Senate testimony, but the controversy persists.
    • Source: Politico - White House Pressure on Powell
  5. Trump’s Stance on Firing Powell:
    • Despite the criticism, Trump has stated he won’t fire Powell, as reported in a YouTube video on July 11, 2025. However, he suggested Powell should resign immediately for someone to lower interest rates, indicating ongoing pressure on monetary policy. Trump’s attacks on Powell are described as “commonplace” by CNN, suggesting they are part of a broader narrative but not necessarily newsworthy in isolation.
    • Source: CNN - Trump's Attacks on Powell, YouTube - Trump Says He Won't Fire Powell
Table: Summary of Key Criticisms and Responses
Critic
Criticism
Powell’s Response
Source
Russell Vought (OMB Director)
Gross mismanagement, ostentatious renovation
Denied luxury features, called descriptions misleading
CNBC - Trump's Budget Chief Criticizes Powell
Bill Pulte (FHFA Chairman)
Deceptive testimony on renovation
Not detailed in response
CBS News - Trump Official Criticizes Powell's Renovation
Trump Appointees (NCPC)
Potential legal violations in renovation project
Denied opulence in Senate testimony
Politico - White House Pressure on Powell
Implications for Monetary Policy and EconomyThe tension between the Trump administration and the Fed could have significant implications for monetary policy. Powell’s potential resignation, if confirmed, might lead to a new chair more aligned with Trump’s views on interest rates, potentially resulting in cuts to stimulate the economy. The renovation controversy, while seemingly administrative, is being used as a political tool, which could undermine the Fed’s independence and affect market confidence. The Fed’s legal authority for building decisions, as outlined in Section 10 of the Federal Reserve Act, is noted, but political pressure could still influence perceptions.Social Media Context: EquaCoin and X DiscussionsThe user EquaCoin, identified from previous interactions, has not directly engaged with news on Jerome Powell on X. Instead, their posts focus on promoting Marco Saba’s "Quantitative Balancing" theory, with mentions of a new book in 2025 and applications in countries like Ukraine. EquaCoin has also complained about "shadow banning" on X for financial reform topics (post ID: 1903091553146437862, March 21, 2025), suggesting visibility issues for such discussions. This indicates EquaCoin’s interest lies more in systemic financial reforms rather than specific Fed chair news, but the broader context of Fed policy might still be relevant given their focus on monetary systems.ConclusionAs of July 11, 2025, Jerome Powell is facing significant political pressure from the Trump administration, centered on a costly Fed headquarters renovation and calls for interest rate cuts. Reports of potential resignation are unconfirmed but notable, with implications for economic policy. On X, discussions are limited, with EquaCoin focusing on other financial reforms rather than Powell directly. This situation highlights the ongoing tension between political influence and the independence of the Federal Reserve, with potential impacts on future monetary policy and market stability.
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