Federal Reserve Chair Jerome Powell is scheduled to deliver a major speech tomorrow at 8:30 AM EST, amid intensifying speculation about his future at the central bank and mounting pressure from the Trump administration.
In a post on X (formerly Twitter), Federal Housing Director William John Pulte hinted that a “resignation speech” from Powell is on the horizon, although he clarified that he does not expect Powell to step down during tomorrow’s address.
Ongoing Clashes with the Trump Administration
Powell has been at odds with President Donald Trump and his top economic officials in recent weeks. According to reports, Trump recently considered firing Powell but ultimately held back.
Tensions escalated after U.S. Treasury Secretary Scott Bessent accused the Fed of straying from its core responsibilities and called for a full review of its non-monetary activities. Bessent warned that the Fed’s independence was under threat due to what he described as “mandate creep.”
Trump, meanwhile, has openly criticized Powell over the Fed’s refusal to aggressively cut interest rates. The president has also raised concerns about a $2.5 billion renovation of the Fed’s historic Washington headquarters, suggesting potential financial misconduct and using it as another reason to call for Powell’s ouster.
Criminal Referral and Calls for Resignation
The pressure ramped up further after Rep. Anna Paulina Luna announced that she had formally referred Powell to the Department of Justice for a criminal investigation.
“Chairman Powell knowingly misled both Congress and executive branch officials about the true nature of a taxpayer-funded project,” Luna wrote on X. “Lying under oath is a serious offense—especially for someone entrusted with overseeing our nation’s monetary system.”
Who Could Replace Powell?
Amid the growing controversy, speculation is swirling about who could succeed Powell if he resigns or is removed. Trump has floated Treasury Secretary Scott Bessent as a possible replacement.
When asked by CNBC on Monday whether he had advised Trump not to fire Powell, Bessent declined to comment, saying only:
“It’s the president’s decision.”
Bessent also criticized the Fed’s recent track record, saying,
“If this were the FAA and we were having this many mistakes, we’d be asking why. All these PhDs over there—I don’t know what they do.”
With Powell’s future uncertain and Trump signaling a more hands-on approach to Fed leadership, tomorrow’s speech is expected to draw intense scrutiny.
