President Donald Trump has issued a fresh warning that he will dismiss Jerome Powell should the Federal Reserve Chairman choose to remain on the central bank’s board following the expiration of his leadership role next month.
During a Wednesday Fox Business interview, Trump responded “Well then I’ll have to fire him, OK?” when asked about Powell’s stated intention to stay with the Fed despite an ongoing Justice Department probe into a $2.5 billion headquarters renovation project.
The president has spent months seeking Powell’s removal from the Fed’s top position, criticizing him for moving too slowly on interest rate reductions that could stimulate economic growth. Powell maintains the investigation serves as a cover to compromise the Federal Reserve’s autonomy in monetary policy decisions.
While Powell’s role as Fed chairman concludes on May 15, his position as a board member continues through January 2028.
This week, federal prosecutors conducted a surprise inspection at the Federal Reserve headquarters construction site that sits at the center of their investigation, according to sources with knowledge of the visit. On Tuesday, two prosecutors and an investigator from U.S. Attorney Jeanine Pirro’s office were denied access by construction workers and directed to contact Fed legal representatives, said one source who requested anonymity due to the sensitive nature of the ongoing probe.
During a private court session last month, a senior official from Pirro’s office acknowledged they have uncovered no criminal wrongdoing in their examination of the headquarters project.
The investigation has drawn criticism from both political parties in Congress and has stalled Senate confirmation proceedings for Kevin Warsh, Trump’s nominee to replace Powell. Republican Senator Thom Tillis of North Carolina has pledged to oppose all Fed nominations until the investigation concludes.
