However, the head of the Federal Reserve remains in the eye of the storm. Donald Trump seeks to move it and place someone related to their commercial policy. Powell’s mandate ends in May 2026.
He United States Treasury Secretary Scott Besenthe considered that the president of the Federal Reserve (Fed), Jerome Powellhe does not need to give up his position immediately. “There is nothing that tells me that I should resign right now,” said the official of Donald Trumpin a context in which the questions by the Republican Administration multiply and the markets speculate with the consequences of their possible displacement.
“His mandate ends in May. If you want me to continue like this, I think should. If you want to leave before, I think you should, “Besent said in a television interview. Powell has been harshly criticized by Trump and his officials for months to maintain the interest rates of the Fed, worried about The inflationary impact of the administration’s tariff increases.
The next meeting of the Fed will be next week and is broadly expected that the officials of the Federal Open Market Committee maintain the stable types in a range of 4.25% to 4.5%. In fact, a recent Bank of America report considered that The rates will not be cut in the remainder of the year.
More questions to Powell
This month, several Republicans also crossed him for the supposedly high costs of renewal of the Central Bank buildings. On Monday, Besent requested an internal review of non -monetary activities of the Fedincluding that initiative. In turn, during Tuesday’s interview he suggested that the legacy of Powell It should focus on “resolving” the functions not related to monetary policy.
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In fact, the American legislator Anna Paulina Luna cited Powell to the Department of Justice for criminal investigation for allegedly deceiving Congress on the renewal project. Florida’s Republican accused Powell of doing “Materially false statements” during his testimony on June 25, 2025.
In an X publication, Luna said: “President Powell deliberately cheated on both Congress and the officials of the Executive Power about the true nature of a project funded by taxpayers. Lying under oath is a serious crimeespecially someone in charge of supervising our monetary system and public trust. “
How could your departure impact?
In a recent report by Yardeni Research, it was proposed that an escalation in Trump’s confrontation with the Fed It could generate seizures in the American Treasury papers and the value of the currency in international markets. “We do not believe that President Trump will say goodbye to Powell,” Yardeni wrote, “but, just in case, we examine the credibility crisis that could occur if it does.”
According to the analysis, officials in Japan and China, the highest US Treasury bond holders, with more than US $ 1,8 billion in total, They see Powell’s dismissal as a “when” than as a “yes”. And they added that “the concern for Asia is that the most powerful central bank dispute I could send US yields through clouds and the dollar strongly down“
Source: Ambito
