Escalating political attacks on the Federal Reserve have prompted economist Mohamed El-Erian to say Fed Chair Jerome Powell should resign—not for missteps, but to actually protect the central bank’s independence.
“If Chair Powell’s objective is to safeguard the Fed’s operational autonomy (which I deem vital), then he should resign,” El-Erian wrote on X.
El-Erian, chief economic advisor at Allianz and a closely followed market voice, indicated that this isn’t the consensus view, as many believe Powell should remain until his term ends in May 2026.
The economist warned that the longer Powell stays, the more damaging the political fallout could be—not just for Powell himself, but for the Fed’s long-standing autonomy.
According to El-Erian, resigning now would be “better than what is playing out”—a rise in threats to Fed independence that will likely escalate if Powell stays.
From Renovations To Resignations: The Political Pressure Mounts
The calls …