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Trump Threatens to Fire Powell If He Declines to Step Down
(MENAFN) President Donald Trump escalated his long-running standoff with the Federal Reserve on Wednesday, declaring he would remove Chair Jerome Powell from his remaining board post should he decline to step down — while insisting a Justice Department criminal probe into the central bank chief must run its course.
Speaking in an interview with a news agency, Trump said he still wants Powell gone but acknowledged he has yet to determine whether "incompetence, corruption, or both" underlie a controversial multimillion-dollar renovation of the Fed's Washington, DC headquarters.
"I think you have to find out," he said.
When the interviewer noted that Powell has vowed to stay on as long as the investigation continues, Trump left little room for ambiguity.
"Well then, I'll have to fire him," he said.
"I've held back (from) firing him. I have wanted to fire him, but I hate to be controversial," he said.
Although Powell's chairmanship expires in May, he retains two years on his term as a Fed governor — the post Trump is now targeting.
Powell made his position unambiguous in March, pledging publicly to remain on the board until the inquiry reaches a transparent conclusion.
"I have no intention of leaving the board until the investigation is well and truly over with transparency and finality," Powell told reporters in Washington.
Federal prosecutors in Washington launched a criminal investigation into Powell last year over the Fed headquarters renovation and allegations he misled Congress regarding the project's scope and cost. Powell has flatly denied the charges, dismissing the probe as politically motivated.
Trump has for years pressured the Fed to slash its benchmark interest rate, relentlessly targeting Powell and other board officials for resisting those demands. In January, he named Kevin Warsh — a former Federal Reserve Board of Governors member — as his pick to succeed Powell as chair.
That nomination, however, now faces an unexpected obstacle from within Trump's own party. Republican Senator Thom Tillis announced he would block Warsh's confirmation for as long as the Powell investigation remains unresolved — a stance that could prove fatal to the nomination in the Senate Banking Committee, where Tillis holds a seat.
"Kevin Warsh is a qualified nominee with a deep understanding of monetary policy. However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent," Tillis wrote on X.
"Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable. My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ's inquiry into Chairman Powell is fully and transparently resolved," he added.
Speaking in an interview with a news agency, Trump said he still wants Powell gone but acknowledged he has yet to determine whether "incompetence, corruption, or both" underlie a controversial multimillion-dollar renovation of the Fed's Washington, DC headquarters.
"I think you have to find out," he said.
When the interviewer noted that Powell has vowed to stay on as long as the investigation continues, Trump left little room for ambiguity.
"Well then, I'll have to fire him," he said.
"I've held back (from) firing him. I have wanted to fire him, but I hate to be controversial," he said.
Although Powell's chairmanship expires in May, he retains two years on his term as a Fed governor — the post Trump is now targeting.
Powell made his position unambiguous in March, pledging publicly to remain on the board until the inquiry reaches a transparent conclusion.
"I have no intention of leaving the board until the investigation is well and truly over with transparency and finality," Powell told reporters in Washington.
Federal prosecutors in Washington launched a criminal investigation into Powell last year over the Fed headquarters renovation and allegations he misled Congress regarding the project's scope and cost. Powell has flatly denied the charges, dismissing the probe as politically motivated.
Trump has for years pressured the Fed to slash its benchmark interest rate, relentlessly targeting Powell and other board officials for resisting those demands. In January, he named Kevin Warsh — a former Federal Reserve Board of Governors member — as his pick to succeed Powell as chair.
That nomination, however, now faces an unexpected obstacle from within Trump's own party. Republican Senator Thom Tillis announced he would block Warsh's confirmation for as long as the Powell investigation remains unresolved — a stance that could prove fatal to the nomination in the Senate Banking Committee, where Tillis holds a seat.
"Kevin Warsh is a qualified nominee with a deep understanding of monetary policy. However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent," Tillis wrote on X.
"Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable. My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ's inquiry into Chairman Powell is fully and transparently resolved," he added.
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