Economist Mohamed El-Erian urged Fed Chair Jerome Powell to resign, according to a statement on X. He cited the need to protect the central bank's independence amid growing political attacks, rather than policy failures. El-Erian warned that Powell’s continued leadership could worsen the erosion of the Fed’s autonomy, citing the escalating criticism from Trump and the White House. Trump called for Powell’s resignation on July 9, accusing him of mismanaging monetary policy and misleading the public on a $2.5 billion renovation. Treasury Secretary Scott Bessent confirmed a formal process to replace Powell is underway. El-Erian believes most successors could restore market confidence, but the upcoming FOMC meeting on July 29th and 30th may be one of the most politically fraught in recent memory.
