Trump threatens to fire Powell if the Fed chair doesn't leave office on his own
President Donald Trump has warned that he will fire Federal Reserve Chair Jerome Powell if he does not leave office when his term as chair expires on May 15. Trump has nominated former Fed Governor Kevin Warsh to replace Powell, but the nomination is pending Senate approval and is being blocked by Senator Thom Tillis until a Justice Department probe into a Fed headquarters renovation project concludes. Powell has said he will stay on as chair until a successor is confirmed, consistent with Fed p
Key Points
- President Trump threatened to fire Federal Reserve Chair Jerome Powell if he does not step down when his term as chair expires on May 15.
- Trump has nominated former Fed Governor Kevin Warsh as Powell's successor, but the nomination is pending Senate approval and is being blocked by Senator Thom Tillis until a Fed HQ renovation probe concludes.
- Powell has indicated he will stay on as chair until a successor is confirmed, and he could remain as a Fed governor through 2028, which Trump says would trigger a firing.
- The Justice Department is investigating a renovation project at the Fed's headquarters, which Trump says must continue and has called 'incompetent' and 'probably corrupt.'
Full Details
President Donald Trump has warned that he will fire Federal Reserve Chair Jerome Powell if he does not leave office when his term as chair expires on May 15. Trump has nominated former Fed Governor Kevin Warsh to replace Powell, but the nomination is pending Senate approval and is being blocked by Senator Thom Tillis until a Justice Department probe into a Fed headquarters renovation project concludes. Powell has said he will stay on as chair until a successor is confirmed, consistent with Fed policy, and he could remain as a Fed governor through 2028. Trump stated that if Powell remains as a governor after a successor is confirmed, he would have him removed from office. The renovation probe has seen a judge block a subpoena to Powell, but U.S. attorney Jeanine Pirro is appealing the decision. Trump has called the renovation project 'incompetent' and 'probably corrupt,' insisting the investigation must continue.
Why It Matters
This threat directly challenges the Federal Reserve's independence, setting a precedent where political pressure could influence monetary policy leadership. The stalled Warsh nomination and the Fed renovation probe create uncertainty in central bank governance, potentially affecting market confidence. If Powell is fired or forced out, it could lead to a constitutional or legal battle over presidential authority versus Fed autonomy. Sectors like banking, monetary policy, and government oversight would be immediately impacted by any escalation.
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