President Donald Trump has once again threatened to dismiss Federal Reserve Chair Jerome Powell, while insisting on the continuation of the probe into the central bank’s headquarters renovation.
Trump expressed his intent to remove Powell from office if he continues to serve as a Fed governor when his term expires next month. Powell’s term as Fed Chair ends May 15, but if Trump’s Fed Chair nominee Kevin Warsh is still unconfirmed, he could continue serving as Fed chair temporarily under Fed rules.
Also, he had earlier said that he wouldn’t step down until the investigation was “truly over.”
“Then I’ll have to fire him,” Trump stated on Wednesday during a Fox Business interview with Maria Bartiromo.
“I’ve wanted to fire him, but I hate to be controversial. I want to be uncontroversial,” he said.
Furthermore, Trump insisted on the continuation of the investigation into the renovation of the Federal Reserve’s headquarters, criticizing it as potentially corrupt and incompetent.
“Does that mean we stop a probe of a building that I would have done for $25 million that’s going to cost maybe $4 billion? Don’t you think we have to find out what happened there?” questioned Trump.
“I have to find out,” he added.
Warsh Fed Chair Bid Sparks Clash
The threat to dismiss Powell comes in as Trump nominee Warsh is set to testify before the Senate Banking Committee on April 21. Notably, Warsh’s financial disclosures reveal assets between $131 million and $209 million, potentially surpassing Powell’s wealth.
Trump has previously expressed confidence that Warsh could drive the U.S. economy to greater heights, potentially achieving more than 15% growth.
Warsh’s Senate confirmation has been delayed due to Republican Senator Thom Tillis‘s (R-NC) vow to stall all Federal Reserve nominations while the Trump administration continues its Justice Department probe into Powell for the Fed building renovation project.
Meanwhile, Sen. Elizabeth Warren (D-Mass.) on Tuesday opposed Warsh’s nomination, arguing the Senate should not proceed while Trump is allegedly trying to influence the Federal Reserve, calling Warsh a “Trump sock puppet.”
On Wednesday, Trump expressed confidence that the Senate Banking Committee would confirm Warsh next week, stating, “Tillis is an American; he knows what to do.”
Powell Exit Looms As Probe Intensifies
Powell’s term as a Board member of the Fed expires on January 31, 2028.
February reports suggested that the Federal Reserve was contesting two subpoenas in a criminal investigation into Powell, asking a judge to dismiss them in sealed proceedings and arguing they may be overly broad or legally privileged. The Department of Justice threatened the Federal Reserve with a criminal indictment in early January over testimony related to Fed renovation costs and issued subpoenas.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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