- Howard Lutnick, the U.S. Commerce Secretary, publicly called for Federal Reserve Chair Jerome Powell to resign or be replaced.
- Lutnick criticized Powell on Fox News for not lowering interest rates and stressed the need for the U.S. to cut rates.
- Powell faces additional pressure, including a referral to the Department of Justice for two alleged counts of perjury.
- President Donald Trump has also expressed dissatisfaction, admitting to drafting a letter to fire Powell but currently has no plans to do so.
- Treasury Secretary Scott Bessent stated that the administration is in “no rush” to name a successor if Powell leaves his position.
U.S. Commerce Secretary Howard Lutnick urged Federal Reserve Chair Jerome Powell to resign or be replaced soon during a Fox News interview on Thursday. Lutnick made the statement due to Powell’s reluctance to lower interest rates, a move Lutnick believes is needed for the U.S. economy.
In the interview, Lutnick said, “He should either resign or be replaced.” He questioned why the U.S., as what he called “the most important country in the world with the greatest economy in the world,” maintains higher interest rates than he believes necessary, arguing, “It’s got to be cut down.”
Officials from the Federal Reserve have explained they paused interest rate cuts because rising tariffs could push inflation up and the inflation rate has not yet reached the Fed’s 2% goal. Most policymakers believe that current tariffs could increase prices.
The pressure on Jerome Powell has grown in recent days. Earlier this week, U.S. Congresswoman Anna Paulina Luna from Florida referred Powell to the Department of Justice for alleged perjury on two occasions.
Last week, it was reported that President Donald Trump drafted a letter to fire Powell, despite later saying he had no immediate plans to dismiss him and calling his performance “terrible.” Rising political and legal scrutiny may increase the possibility of Powell’s resignation.
While speculation over the future of the Fed chair role continues, Treasury Secretary Scott Bessent stated that the administration is in “no rush” to appoint a successor if Powell steps down or is removed.
For further details, see this coverage: Powell’s Morning Speech Draws Scrutiny Amid DOJ, Exit Rumors.
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