Federal Reserve Chair Jerome Powell has privately assured close allies and lawmakers that he has no intention of resigning, despite persistent pressure from President Donald Trump to lower interest rates. According to multiple sources familiar with Powell’s thinking, he believes stepping down would severely undermine the independence of the Federal Reserve and set a dangerous precedent of political interference in monetary policy.
“He feels very strongly that his responsibility is to maintain that independence,” said Sen. Mike Rounds (R-S.D.), who has personally asked Powell whether he might step down. “He says no—that would reduce the independence of the Federal Reserve.”
Powell’s determination to serve out his term through May 2026 all but guarantees he will remain in the political crosshairs of a White House deeply frustrated with the Fed’s decision to keep interest rates steady. President Trump has repeatedly and publicly blasted Powell, calling him “terrible,” “a numbskull,” and “one of my worst appointments,” escalating an already tense standoff into a high-profile campaign to discredit the central bank’s leader.
At the center of the administration’s pressure campaign is a demand for aggressive rate cuts, which Trump argues are necessary to stimulate growth and ease housing costs. Powell, a registered Republican and a longtime Fed official who was nominated by Trump himself in 2017, has maintained a data-driven, nonpartisan approach, which has earned him praise from across the political spectrum—even from former critics in the Biden administration.
But Trump’s frustration has reached new heights in recent weeks, culminating in a rare and awkward visit to the Fed’s headquarters on July 24, where Powell personally escorted the president through a $2.5 billion renovation project. During the tour, Trump once again pushed for lower rates, slapping Powell on the back and telling him he’d “love him to lower interest rates.”
Though Trump stopped short of saying he would fire Powell—a move his advisers warn could tank financial markets—his allies have intensified efforts to make Powell’s job politically uncomfortable. The White House has launched investigations into the cost of the Fed’s renovation, suggesting it could be grounds for dismissal. Aides have even spread unfounded rumors that Powell’s resignation is imminent.
“Every day that Jerome Powell is in Washington is a gift to the president,” said one Trump adviser. “Either Jerome Powell leaps or he boils.”
Still, Powell has refused to take the bait. Publicly and privately, he remains focused on the Fed’s mandate to manage inflation and employment without political pressure. And despite being the target of daily verbal attacks, Powell has repeatedly said he will stay in office and let the economic data—not politics—guide the Fed’s decisions.
That steadfastness has earned Powell new support from Democrats, including some who had previously criticized his policies under President Biden. “He’s putting the integrity of the institution above himself,” said Jared Bernstein, Biden’s former chief economic adviser. “If I were a 72-year-old guy getting verbally abused by the president on a daily basis, retirement would look pretty good. But Powell is focused on protecting the institution.”
Even some Republicans are urging the Trump administration to ease off. They argue that if Powell does eventually cut rates, it will be more effective—and credible—if it’s not seen as caving to political pressure.
“The vast majority of the members of the Senate are smart enough to know what an impact it would be on the markets should there be any inkling that the Fed was being coerced,” said Sen. Rounds. “[Powell’s] in the right position. He’s got a very tough job, but I respect him for standing firm.”
For now, Powell appears intent on weathering the political storm. And while Trump may continue his campaign to push the Fed toward lower rates, the central banker seems just as committed to defending the Fed’s independence—even if it means standing alone.
