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 regarding 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, he added.
Thom Tillis, an influential Republican senator on the committee which oversees nominations for the Federal Reserve chair, has threatened to block Warsh's confirmation. If Warsh is not confirmed before Powell's term expires, he plans to stay on temporarily in the post. That's what the law calls for. That's what we've done on several occasions, Powell stated.
Tillis has warned Trump he will not let Warsh's appointment go ahead unless a criminal investigation into Powell, linked to the renovation of the Federal Reserve building, is dropped. Senate Majority Leader John Thune has remarked that he believes the Department of Justice should conclude its investigation into Powell, indicating that it should be wrapped up for the benefit of the Federal Reserve and the American people.
Trump expressed his hope that Tillis would drop his opposition to the appointment and remarked, Don't you think we have to find out what happened there? I have to find out. Despite the ongoing controversy, Treasury Secretary Scott Bessent conveyed optimism about Warsh's confirmation before May 15.
Trump criticized Powell over the handling of the Federal Reserve renovation, alleging excessive spending on a project that he believes could have been completed for much less. He has previously labeled Powell as a knucklehead and noted frustrations over the central bank's actions regarding interest rates. Historically, if Trump were to proceed with the dismissal, it would mark a significant break with tradition, as no Federal Reserve chair has been fired before. Powell was initially appointed by Trump in 2017 and later reappointed by Joe Biden in 2021.
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 regarding 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, he added.
Thom Tillis, an influential Republican senator on the committee which oversees nominations for the Federal Reserve chair, has threatened to block Warsh's confirmation. If Warsh is not confirmed before Powell's term expires, he plans to stay on temporarily in the post. That's what the law calls for. That's what we've done on several occasions, Powell stated.
Tillis has warned Trump he will not let Warsh's appointment go ahead unless a criminal investigation into Powell, linked to the renovation of the Federal Reserve building, is dropped. Senate Majority Leader John Thune has remarked that he believes the Department of Justice should conclude its investigation into Powell, indicating that it should be wrapped up for the benefit of the Federal Reserve and the American people.
Trump expressed his hope that Tillis would drop his opposition to the appointment and remarked, Don't you think we have to find out what happened there? I have to find out. Despite the ongoing controversy, Treasury Secretary Scott Bessent conveyed optimism about Warsh's confirmation before May 15.
Trump criticized Powell over the handling of the Federal Reserve renovation, alleging excessive spending on a project that he believes could have been completed for much less. He has previously labeled Powell as a knucklehead and noted frustrations over the central bank's actions regarding interest rates. Historically, if Trump were to proceed with the dismissal, it would mark a significant break with tradition, as no Federal Reserve chair has been fired before. Powell was initially appointed by Trump in 2017 and later reappointed by Joe Biden in 2021.
