Trump Ramps Up Pressure on Fed, Powell Refuses to Resign Amid Rate Cut Clash

In Brief:

Trump applies “boiling frog” strategy to push Fed Chair Jerome Powell toward rate cuts.

Powell stands firm, vowing to complete his term and defend the Fed’s independence.

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Federal Reserve Chairman Jerome Powell has reportedly told allies he will not resign despite increasing pressure from President Trump to cut interest rates, according to CNN.

Trump’s criticism has intensified in recent weeks, likening his strategy to a “boiling frog in warm water” — a slow escalation of political pressure. The former president has also launched investigations into the Fed’s $2.5 billion renovation project, using it as a pretext to challenge Powell’s leadership.

During a site visit on Thursday, Trump publicly confronted Powell, saying, “Interest rates must go down,” while patting the Fed chair’s back. A close Trump advisor claimed the aim is to push Powell until he either “jumps out or gets cooked.”

Despite the attacks, Powell is standing his ground, stating privately that resigning would damage the Fed’s institutional independence, especially in the face of political interference. Appointed by Trump in 2017, Powell was once praised for his neutrality — a stance that now appears to be the root of the conflict.

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