US President Donald Trump has escalated his rhetoric against Federal Reserve Chair Jerome Powell, saying he would consider firing him if he remains in office beyond the end of his term.
“Then I’ll have to fire him,” Trump told Fox Business.
“I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial.”
Powell’s term as chair is set to expire on May 15, but he has indicated he will stay on until a successor is confirmed.
Warsh nomination faces roadblock
Trump has nominated Kevin Warsh to replace Powell. However, the confirmation process has hit a snag, with Senator Thom Tillis vowing to block the nomination.
Tillis pledged to “oppose the confirmation of any Federal Reserve nominee… until the DOJ’s inquiry… is fully and transparently resolved.”
Probe into Fed renovation complicates transition
At the center of the standoff is a criminal investigation into Powell’s handling of the costly renovation project.
The investigation is “not just about the $2.5 billion project,” Trump said, but also about Powell’s “incompetence.”
The probe has added uncertainty to leadership transition timelines at the central bank.
Powell signals he will stay until successor confirmed
Powell has made clear he does not intend to step down immediately after his term ends, especially amid the ongoing investigation and confirmation delays.
“That’s what the law calls for… and that’s what we’re going to do in this situation,” Powell said, referring to serving in a temporary capacity.
Trump pushes for rate cuts, backs Warsh
Trump reiterated his demand for lower interest rates and expressed confidence that Warsh would align with his economic vision.
Trump earlier said he would only appoint a chair who supported lower rates.
The Federal Reserve’s policy decisions are made by a 12-member committee, including board governors and regional bank presidents, limiting unilateral control by the chair.
Tensions spill
Trump also addressed Tillis directly, expressing mixed confidence about the senator’s stance.
“He’s on his way out… I think he doesn’t want the legacy of stopping a great person,” Trump said.
Despite this, Trump insisted to the news outlet that the investigation into Powell must continue: “Don’t you think we have to find out what happened there? I have to find out.”
