Buckeye Reporter

Senator Bernie Moreno (R-Ohio) has called for Federal Reserve Chair Jerome Powell to resign, citing concerns over the central bank’s decision to keep interest rates unchanged despite what he describes as improving economic conditions under President Donald Trump.

In a letter sent July 9, Moreno criticized Powell and the Federal Open Market Committee (FOMC) for maintaining the target federal funds rate at 4.25 to 4.5 percent. Moreno argued that recent data from the Bureau of Economic Analysis shows Personal Consumption Expenditures (PCE) inflation in May was “almost exactly in line with the FOMC’s long-run goal of 2 percent, measuring a very mild 2.3 percent on an annualized basis.” He pointed to analysis from the Council of Economic Advisors indicating that prices have remained stable and tariffs have not contributed to inflation this year.

Moreno stated: “Your choice not to lower interest rates despite the Trump Administration’s economic progress is costing our country $400 billion per year,” adding, “You should resign immediately and allow the President the deference to select someone he feels can make the changes needed to restore the credibility of the Federal Reserve System.”

The senator has questioned Powell's public statements on trade policy, noting that while Powell has criticized former President Trump’s tariffs, he did not comment on other issues such as COVID-era lockdowns or policies enacted by President Joe Biden, including restrictions on liquefied natural gas exports and tax increases.

“While you’ve continued to criticize President Trump’s tariffs and argue that they will contribute to inflation, despite you stating clearly on multiple occasions that it is not the Federal Reserve’s job to comment on tariff policy, there are several other critical policy errors made by the previous Administration that threw gasoline on the inflationary fire – all of which you chose to ignore,” Moreno wrote.

Moreno also referenced recent hiring data released July 3 that exceeded expectations and reiterated his concern about what he views as Powell's lack of objectivity. The senator contends that current monetary policy is “severely out of step with current economic conditions” compared with peer economies such as Japan, Canada, and those in the European Union.

These calls for Powell's resignation come after President Trump himself urged Powell to step down earlier this year.