Trump Threatens to Fire Powell, Legal Dispute Tests Fed Independence
US President Donald Trump said he would fire Jerome Powell if the Federal Reserve Chairman does not resign “in a timely manner,” while asserting he would not end the Department of Justice (DOJ) investigation into Powell. Trump made the remarks in a Fox Business interview recorded Wednesday and aired Thursday.
The comments came ahead of Powell’s term as chairman ending in May. However, Powell’s term as a member of the Board of Governors runs through 2028. Powell previously stated that if his successor is not confirmed by the end of his term as chairman, he would serve as acting chairman, citing Fed precedent of appointing a board member as acting chairman when the chair’s seat becomes vacant.
Trump allies are said to be hoping Powell will also step down from the board when the chairman’s term ends. However, Powell said he has “no intention” of stepping down from the board until the DOJ investigation into the building renovation project is “completely over.” In the same interview, Trump indicated he has no plans to end the investigation, saying the public needs to know whether the issue is related to “incompetence, corruption, or both.”
This uncertainty also has the potential to impact the confirmation path of Trump's proposed replacement, Kevin Warsh. Senator Thom Tillis—a key voice on the Banking Committee—praised Warsh but said he would block his confirmation until the DOJ investigation is completed, arguing that the probe poses a threat to Fed independence. The Senate Banking Committee is scheduled to hold Warsh's confirmation hearing on April 21.
These statements raise the risk of an open confrontation between the White House and the central bank in the coming weeks, including potential legal battles that test the limits of presidential authority. Trump is also said to be seeking to oust Fed Governor Lisa Cook, a case that has reached the Supreme Court and has not yet been decided—adding to the uncertainty surrounding Fed governance, which is typically sensitive to interest rate policy expectations and market stability. (gn)
Source: Newsmaker.id
