US President Donald Trump has threatened to fire Federal Reserve Chair Jerome Powell if he does not step aside at the end of his term in May. The two have been embroiled in a bitter spat over Powell's reluctance to cut the central bank's interest rate, despite Trump's repeated calls.
Powell's term expires on 15 May, but he is planning to remain in post until his successor, Kevin Warsh, is confirmed by the Senate. 'Then I'll have to fire him,' Trump told Fox Business, when asked about Powell's plans to stay on in the job. 'I've held back firing him. I've wanted to fire him, but I hate to be controversial,' Trump added.
Thom Tillis, an influential Republican senator on the committee overseeing nominations for the Federal Reserve chair, has threatened to block Warsh's confirmation. If Warsh is not confirmed before Powell's term expires, Powell plans to stay on temporarily in the post, emphasizing that this is in accordance with the law.
Tillis has warned Trump he will not let Warsh's appointment go ahead unless an ongoing criminal investigation into Powell, linked to renovations of the Federal Reserve building, is dropped. Trump, however, stated he is not prepared to let the investigation go.
Trump has accused Powell of mishandling finances, suggesting that billions were spent unnecessarily on the renovation project, which he believes should have cost significantly less. He has previously criticized Powell's performance and called him a 'knucklehead' for not acting on interest rate cuts as he urged.
The tension escalated in 2025, leading to market fluctuations and signaling a possible unprecedented firing of a Fed chair, should Trump proceed with his threats. Powell's continued leadership remains uncertain as political maneuvers unfold in Washington.
Powell's term expires on 15 May, but he is planning to remain in post until his successor, Kevin Warsh, is confirmed by the Senate. 'Then I'll have to fire him,' Trump told Fox Business, when asked about Powell's plans to stay on in the job. 'I've held back firing him. I've wanted to fire him, but I hate to be controversial,' Trump added.
Thom Tillis, an influential Republican senator on the committee overseeing nominations for the Federal Reserve chair, has threatened to block Warsh's confirmation. If Warsh is not confirmed before Powell's term expires, Powell plans to stay on temporarily in the post, emphasizing that this is in accordance with the law.
Tillis has warned Trump he will not let Warsh's appointment go ahead unless an ongoing criminal investigation into Powell, linked to renovations of the Federal Reserve building, is dropped. Trump, however, stated he is not prepared to let the investigation go.
Trump has accused Powell of mishandling finances, suggesting that billions were spent unnecessarily on the renovation project, which he believes should have cost significantly less. He has previously criticized Powell's performance and called him a 'knucklehead' for not acting on interest rate cuts as he urged.
The tension escalated in 2025, leading to market fluctuations and signaling a possible unprecedented firing of a Fed chair, should Trump proceed with his threats. Powell's continued leadership remains uncertain as political maneuvers unfold in Washington.
