The Fed's official website also quickly posted Powell's statement.

Trump's continued pressure at this time may have the following considerations:

1. Politically: Although Powell's term as Federal Reserve Chair will end in May 2026, his term as a board member will last until January 2028. Historically, it is extremely rare for a departing Chair to remain as a board member (the last time was after World War II with Marin Eckerls). This would cause great embarrassment—when the new Chair sets policies, a highly respected former Chair with dissenting views sits beside him. The former Chair would inevitably become a leader of opposition, making it difficult for the new Chair to establish authority, or even causing divisions within the Fed. Therefore, Trump is essentially applying extreme pressure on Powell to preheat the situation, using legal measures to discredit and urge him to resign as a board member simultaneously. This could also serve as a warning to other Fed officials: if they do not cooperate with the White House, the consequence is personal legal risks.

2. Economic: In corners we cannot see (especially commercial real estate, private credit, credit cards, or small and medium-sized banks), asset quality has deteriorated to a critical point. The prolonged high interest rates may cause a key liquidity valve to break soon. Trump’s team may have access to worse internal economic data than the public. They urgently need the Fed to cut rates sharply now, stop balance sheet reduction (QT), or even restart QE to stabilize the economy. Powell emphasizing “based on evidence and economic conditions” means he is unwilling to cut rates early due to political pressure before official data (inflation, employment) collapses. This is unacceptable to Trump, because once a crisis erupts, it could affect mid-term elections. Trump might prefer to inflate the bubble further by easing liquidity before the crisis occurs.

Regardless of the final outcome, whether Powell stays or leaves, whether Haskett or Wosh takes office, the independence of the Fed has already been affected in fact. Once the Fed fully becomes a subordinate of the Treasury or White House (for example, if whoever takes office is just a subordinate of Bessent), the market may panic and seek safety, which is one of the deep reasons why gold prices continue to rise.