Republican Arizona congressman calls on Fed chair to resign

U.S. Rep. Abe Hamadeh urged Federal Reserve Chairman Jerome Powell to resign, citing Powell's unwillingness to lower interest rates.

The Republican congressman from Peoria, Arizona, made the request in a letter he sent Powell.

Hamadeh announced his letter on Sunday. Besides the debate over interest rates, Hamadeh cited Powell's "gross mismanagement" of the reserve's headquarters renovation project and failure to evaluate the effect of President Donald Trump's tariffs.

Media reports stated last week that Powell is considering resigning.

Hamadeh, who's in his first year in Congress, said his request for Powell's resignation "does not come lightly nor without good cause."

"Considering the recent revelations by Office of Management and Budget Director Russell Vought about Chairman Powell's gross mismanagement of the Federal Reserve's headquarters renovation project, and his apparent lack of candor before the Senate Banking Committee, neither does my call come too soon," Hamadeh said.

Last week, Vought claimed Powell was mismanaging the funds for the reserve's headquarters. Vought said the renovation project is almost $700 million more than its initial cost. He sent a letter to Powell to inquire about the situation.

Hamadeh wrote in his letter that this overspending is "wreaking havoc with Americans' budgets."

On Monday, Powell requested an inspector general review the renovation costs.

On another economic matter, Hamadeh said, contrary to Powell's predictions, Trump's tariffs have helped improve government finances.

After Trump announced the tariffs April 2, Powell said they would increase inflation and slow down the economy.

But the U.S. Department of the Treasury announced last week that the federal government had a budget surplus in June. CNBC reported the last time this occurred was in 2017.

The Federal Reserve adjusts the interest rate to influence the economy. The Fed typically lowers the rate to encourage borrowing and spending and raises it to decrease inflation.

Hamadeh said America's inflation rate is below 2%. But the U.S. Bureau of Labor Statistics saidinflation in America is at 2.7%, which is down from 2.9% in 2024.

The Federal Reserve continues to ignore Trump's call to lower short-term interest rates, Hamadeh said. He requested the Federal Reserve "alleviate the burden of servicing federal debt" and unleash "economic prosperity for all."

America's short-term interest rate is currently 4.2%. This percentage has remained unchanged since January, according to CEIC, a global database company.

The Nasdaq defines a short-term interest rate as "loan contracts or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year."

Hamadeh is not the only person who has called on Powell to leave his position. William Pulte, the chairman of the board of Fannie Mac and Freddie Mac, said Powell's resignation would be "the right decision for America," according to Fox Business.

Hamadeh noted he was "heartened" to hear Powell was thinking of resigning. He added he encouraged Powell to resign "immediately in order to avoid further damage to our great nation."