'One of my worst appointments': Trump targets Fed Chair again, calls on 'too late, numbskull’ to lower rates

US President Donald Trump has sharply intensified his criticism of Federal Reserve Chair Jerome Powell, accusing him of stalling the US housing market with high interest rates and hinting at possible dismissal over a controversial $2.5 billion renovation at the Fed's headquarters.In a pair of fiery Truth Social posts on Friday, Trump branded Powell a "numbskull" and "one of my worst appointments," blaming him for keeping borrowing costs too high despite what Trump called “very low inflation” and a strong economy. "He is truly one of my worst appointments. Sleepy Joe saw how bad he was and reappointed him anyway - And the Fed Board has done nothing to stop this “numbskull” from hurting so many people.

In many ways the Board is equally to blame!" said Trump in a post on Truth Social.“The USA is Rockin’. We deserve to be at 1%, saving one trillion dollars a year on interest costs,” Trump further added, urging Powell to “Lower the Rate, Too Late!” he added.The renewed tirade follows months of escalating tension between the White House and the independent central bank. Trump’s latest remarks go beyond monetary policy, raising questions about the legality and motivation behind the Federal Reserve’s multibillion-dollar renovation of its Washington, DC buildings.

Trump has pointed to the rising cost of the project- now estimated between $2.5 billion and $2.7 billion- as a possible avenue to remove Powell from office, even suggesting on Wednesday that “fraud” might be involved, reported AFP.In response, Powell sent a letter to White House budget director Russell Vought clarifying that there were no luxury features being added, such as VIP dining rooms or private elevators. He noted that the buildings required “significant structural repairs” and requested an independent review by the Fed’s inspector general.Can the president fire the fed chair?While Trump’s threats have stirred headlines, experts say removing a sitting Fed chair is far from straightforward. According to legal scholars, the president would need to show cause under federal law—such as “malfeasance,” “inefficiency,” or “neglect of duty”—to justify dismissal.“Right now, there’s no evidence that the White House has released publicly or pointed to that suggests mismanagement in connection with the renovation,” said Lev Menand, associate professor at Columbia Law School, quoted by AFP.

“Based on publicly available information, there are no grounds for removing Powell ‘for cause’.”Any removal effort would require formal charges, a response from Powell, and a lengthy process that could further unsettle financial markets.Meanwhile, analysts warn that any attempt to forcibly remove Powell could trigger market volatility and shake investor confidence in the Fed’s independence. “Equities would likely sell off on impact,” said Padhraic Garvey of ING, as quoted by AFP.

“This would be an effective forced exit of a reputable Fed chair by the US president, an unprecedented event for the market to get its head around,” he told AFP.However, some investors may eventually speculate that a leadership change could hasten interest rate cuts, potentially boosting stocks. But any quick monetary pivot remains uncertain, as the Federal Open Market Committee is composed of 12 voting members who independently weigh inflation and employment data.