Former U.S. President Donald Trump has once again stirred controversy on social media, openly calling for the immediate resignation of Federal Reserve Chair Jerome Powell. His remarks sparked a wave of volatility across financial markets, bringing renewed attention to the ongoing friction between politics and monetary policy.

The latest clash gained traction after Bill Pulte, head of the Federal Housing Finance Agency (FHFA), posted on X (formerly Twitter), accusing Powell of misleading Congress during a recent hearing regarding the renovation expenses of the Fed’s headquarters. Pulte claimed the renovation budget amounted to as much as $2.5 billion and allegedly included extravagant features such as VIP dining rooms and marble furnishings. He argued that Powell’s denial of these amenities was intentionally deceptive, calling it a violation of public duty and urging Congress to launch a formal investigation.

Trump quickly amplified the message by reposting Pulte’s comments and demanding Powell’s resignation. He also criticized Powell for policy decisions he believes have cost the U.S. economy billions—particularly, the Fed’s reluctance to cut interest rates. According to Trump, persistently high interest rates are slowing economic recovery and making the U.S. less competitive in the global flow of capital, especially as many other central banks have already shifted toward looser monetary policies.

Powell, for his part, defended his position during the congressional hearing. He rejected the allegations of excessive spending, maintaining that the renovation project remains within reason and subject to appropriate oversight. More importantly, he emphasized that monetary policy decisions are driven by economic data and inflation targets—not political pressure. He reiterated the Fed’s commitment to policy independence, calling it a fundamental principle of central banking.

From a legal standpoint, removing a Federal Reserve chair is far from simple. According to the Federal Reserve Act of 1913, the president cannot unilaterally dismiss the Fed chair without clear evidence of wrongdoing, and any such action must go through Congress. Legal experts point out that while political heat may rise, the threshold for dismissal remains high, making it unlikely Powell will be removed in the short term.

Nonetheless, the controversy is already creating unease in financial markets, as investors consider how increased political interference could cloud future policy decisions. With the presidential election drawing closer, and speculation mounting around a possible congressional investigation, uncertainty is growing. This in turn could weigh on market sentiment, especially given the Fed’s pivotal role in shaping global capital flows and currency movements.

At its core, this latest episode underscores the longstanding policy divide between Trump and Powell. It reflects deeper disagreements over the direction of U.S. economic strategy and monetary governance. As developments unfold over the coming weeks—whether Congress opens an investigation or the Fed adjusts its stance—market volatility could intensify. Investors would be wise to stay alert and be prepared for more twists ahead.