WASHINGTON— President Donald Trump on Wednesday threatened to fire Federal Reserve Chair Jerome Powell if Powell does not step down when his term as Fed chief ends on May 15, escalating a confrontation that is intensifying concerns over the central bank’s independence.
Reuters reported Trump said he would remove Powell if he is “not leaving on time,” even though Powell’s separate term as a member of the Fed’s Board of Governors runs until 2028.
Reuters said the clash is unfolding alongside a Justice Department probe tied to the Federal Reserve’s costly headquarters renovation project, an investigation Trump has embraced and Powell has criticized as politically motivated. According to Reuters, Powell has indicated he plans to remain on the board until the investigation is resolved, while the administration has continued pressing the issue despite a judge previously rejecting grand jury subpoenas tied to the matter.
The dispute is also complicating Trump’s effort to install former Fed Governor Kevin Warsh as Powell’s successor. Reuters reported Warsh is scheduled to face a Senate confirmation hearing on April 21, but Sen. Thom Tillis has said he will oppose Fed nominees while the Powell probe continues, creating another hurdle for the Administration’s push to reshape the central bank.
The latest threat marks a sharp turn from Trump’s position in January, when Reuters reported he said he had no plan to fire Powell and that it was “too early” to say whether grounds existed to do so.