US Commerce Secretary Howard Lutnick is calling for Fed Chair Jerome Powell to resign, the secretary said in a Fox interview on Thursday. Lutnick said that Powell “has to go” and recommended getting a replacement Fed Chair soon.
“He should either resign or be replaced,” Lutnick said in the Fox interview. He also discussed the hesitance from the Federal Reserve to lower interest rates, something US President Donald Trump has also bashed Powell for. “It makes no sense… We are the most important country in the world with the greatest economy in the world. Why in the world do we have such a high interest rate? It’s got to be cut down,” Lutnick said. Fed officials have defended the pause on rate cuts due to uncertainty over the effect of tariffs on prices and that inflation hasn’t yet reached its goal of 2%. Most of the policymakers expect the tariffs will create upward pressure on inflation.
Pressure on Fed Chair Jerome Powell Continues to Mount
Earlier this week, the Fed Chair also got hit with a referral to the Department of Justice (DOJ) on two instances of criminal charges. US Congresswoman for Florida Anna Paulina Luna is accusing Powell of perjury on two occasions.
The Fed Chair is already in hot water with the Trump administration. Last week, it was revealed that US President Donald Trump drafted a letter to fire Powell. The president has previously called on Mr. Powell to resign, stating that he has not done enough to lower interest rates. As recently as last Friday, Trump said he had no plans to fire Mr. Powell, despite saying the Fed chair was doing a “terrible job.” However, mounting pressure on the current Federal Reserve chair has become more serious, and the criminal charges he is being accused of could play a part in his potential resignation.
Also Read: Powell’s Morning Speech Draws Scrutiny Amid DOJ, Exit Rumors
While talks of a Fed Chair are heating up, Treasury Secretary Scott Bessent also says that the US is in “no rush” to find a successor, whether Powell decides to resign or get the sack.