WASHINGTON, United States — President Donald Trump escalated tensions with the Federal Reserve on Wednesday, vowing to fire Chair Jerome Powell if he remains in his position beyond the expiration of his mandate next month.
Powell's term as chair concludes on May 15, though he could technically stay on as a Fed governor until 2028 if no successor is confirmed. The central bank leader stated last month that he would not step down from the board until a Justice Department investigation into renovation cost overruns at the Fed is fully resolved.
"I'll have to fire him," Trump declared in an interview with Fox Business, referring to Powell. "If he's not leaving on time, I've wanted to fire him."
The president's remarks underscore a year-long clash with Powell, whom Trump has criticized for not implementing more aggressive interest rate cuts. The administration has also moved to oust another Fed governor, Lisa Cook, and launched the DOJ probe that now complicates the leadership transition.
Trump has nominated former Fed official Kevin Warsh to succeed Powell, but the confirmation faces hurdles in the Senate. Warsh is scheduled for a hearing before the Senate Banking Committee next Tuesday, but some lawmakers are resisting the nomination while the investigation into Powell remains active.
Senator Thom Tillis, a Republican on the committee, has pledged to block Warsh's confirmation until the DOJ probe is concluded, calling it political pressure on the central bank's independence.
Despite the impasse, Treasury Secretary Scott Bessent expressed optimism about Warsh's prospects, telling reporters that Republican committee members "are aligned" in supporting the nominee. Bessent added that he hopes Warsh will be "the chair of the Fed on time" by May 16.
Trump's economic adviser, Kevin Hassett, echoed this confidence at an Axios event, stating, "They'll work something out. I have high confidence that will happen."
Analysts question the administration's strategy, with David Wessel of the Brookings Institution noting, "It's very hard to figure out what rational motive President Trump can have for prolonging this investigation of Jay Powell if it's going to delay the confirmation of Kevin Warsh."
The standoff highlights ongoing tensions between the White House and the traditionally independent Federal Reserve, with Trump's latest threat raising fresh concerns about political interference in monetary policy.