President Donald Trump said Wednesday that he will fire Federal Reserve Chair Jerome Powell if Powell does not step down when his term as chair ends on May 15.
“Then I’ll have to fire him,” Trump told Fox Business host Maria Bartiromo in an interview. He added that he has held back from firing Powell in the past because he dislikes controversy, but he is ready to act if Powell stays on.
Powell’s term as chair is set to expire soon, but his role as a Fed governor runs until January 2028. If Trump’s nominee to replace him is not confirmed by the deadline, Powell could stay on as chair “pro tempore” under Fed rules. Powell has said he plans to remain until the Justice Department’s ongoing criminal investigation into him is fully resolved with “transparency and finality.”
The Nomination Delay
In January, Trump nominated former Fed governor Kevin Warsh to take over as chair. However, the confirmation process has stalled. Sen. Thom Tillis, a Republican from North Carolina and a key member of the Senate Banking Committee, has refused to support Warsh’s nomination until the investigation into Powell ends.
The Senate Banking Committee has scheduled a confirmation hearing for Warsh on April 21, but Tillis continues to hold his position. Trump expressed hope that the committee would confirm Warsh next week and said Tillis “is an American; he knows what to do.” Treasury Secretary Scott Bessent also said he is optimistic the change will happen on time, making any firing unnecessary.
The Criminal Investigation
The Justice Department, under U.S. Attorney Jeanine Pirro for the District of Columbia, is investigating Powell over his testimony to Congress last year about a major renovation of the Fed’s headquarters in Washington, D.C. The project, originally budgeted much lower, has ballooned to around $2.5 billion or more due to unexpected issues like asbestos, contaminated soil, and a high water table.
Trump has sharply criticized the overruns, calling them incompetent or possibly corrupt. “Here’s a man who took this little, tiny building… and he’s spending more than $3 billion,” he said. He argued that the probe must continue to uncover what happened, even if it delays his own nominee.
On Tuesday, two prosecutors from Pirro’s office showed up unannounced at the Fed building to inspect the renovation but were turned away. A Fed lawyer representing Powell told them not to return without a Fed attorney present. Pirro defended the review, saying any project with nearly 80% cost overruns deserves serious scrutiny.
Powell has called the investigation politicized. A federal judge recently quashed some of the Justice Department’s subpoenas, ruling there was essentially no evidence of a crime. Prosecutors plan to appeal. Despite these setbacks, Trump said he will not ask to stop the probe.
Questions About Independence and Legality
This situation has created an unusual clash between the White House and the Federal Reserve. Many experts worry that Trump’s threats and the investigation could damage the central bank’s traditional independence from political pressure. The Fed is meant to make decisions about interest rates and the economy without direct interference from the president.
Firing a Fed chair is legally complicated. Under the Federal Reserve Act, the president can remove a governor “for cause,” such as inefficiency or misconduct, but not simply for policy disagreements. Powell, who is a lawyer, has said the president cannot remove him at will, and he would likely fight any attempt in court.
Trump has also tried to remove another Fed governor, Lisa Cook, over separate allegations, but that case is still before the Supreme Court. Justices seemed skeptical of broad presidential power to fire Fed officials during arguments in January.
Powell has not said whether he would stay on the Fed Board as a governor after his time as chair ends. Past chairs have usually stepped down completely.
Why It Matters
The ongoing fight comes as the Fed continues to manage U.S. monetary policy. Trump has long criticized Powell for keeping interest rates too high, calling him a “disaster.” The public dispute, combined with the stalled nomination and court battles, raises bigger questions about whether political pressure could influence the Fed’s ability to do its job free from interference.
As the May 15 deadline approaches, the standoff between the Trump administration and Powell shows no quick resolution. The outcome could affect not only who leads the Fed but also how independent America’s central bank remains in the future.
