In a development that could reverberate through financial markets, Federal Reserve Chair Jerome Powell is reportedly considering stepping down, according to sources familiar with the matter.
Although neither Powell nor the Federal Reserve has made an official announcement, the news has fueled widespread speculation about the motivations and timing of the potential resignation, especially as the central bank grapples with ongoing inflation pressures and economic uncertainty, Cedar News reported.
Powell, initially appointed by President Donald Trump in 2018 and reappointed by President Joe Biden in 2022, has led the Fed through a series of unprecedented challenges—from the COVID-19 pandemic to record inflation and ongoing debates over interest rate policy.
Market analysts caution that Powell’s potential resignation could trigger short-term volatility, as investors and lawmakers seek clarity on whether the Fed’s policy direction will remain steady or face disruption, the outlet added.
Meanwhile, Trump’s pressure campaign targeting the Federal Reserve and Chair Jerome Powell to lower interest rates escalated this week. The newest front came from Office of Management and Budget Director Russell Vought, who on Thursday sent a letter to Powell criticizing the renovation of the Federal Reserve’s headquarters in Washington, NBC News reported.
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“The President is extremely troubled by your mismanagement of the Federal Reserve System,” Vought wrote in a letter posted to X. “Instead of attempting to right the Fed’s fiscal ship, you have plowed ahead with an ostentatious overhaul of your Washington, D.C. headquarters.” Asked on Friday if he was planning to fire Powell, Trump said “no.”
