[IMG alt="Trump fire Powell Federal Reserve threat escalates as the president warns he will remove the Fed chair if he stays on as governor after his term ends.
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President Donald Trump escalated his long-running conflict with Federal Reserve Chair Jerome Powell on Wednesday, threatening to remove him from office if he remains as a Fed governor after his successor is confirmed.
Trump made the remarks during an appearance on Fox Business, where he said he had held back from firing Powell previously but would act if Powell chose to stay at the central bank in any capacity after his chairmanship ends.
“Then I’ll have to fire him,” Trump said. “If he’s not leaving on time, I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial. I want to be uncontroversial.”
Powell’s term as Federal Reserve chair expires on May 15, and Trump has nominated former Fed Governor Kevin Warsh as his successor. The Senate confirmation process for Warsh is still underway.
While Powell’s chairmanship is nearly over, he retains two years remaining on his separate term as a member of the Fed’s Board of Governors.
Most outgoing Fed chairs have historically departed the institution entirely after being replaced, but Powell has declined to commit to doing so under repeated questioning.
Powell has indicated he will remain in his role until the ongoing investigation into the Fed’s headquarters renovation is resolved and a confirmed successor is in place, a position he has maintained publicly as a matter of institutional principle.
The political tension around Powell’s departure has been significantly complicated by a federal investigation into the renovation of the Federal Reserve’s Washington headquarters.
U.S. Attorney for the District of Columbia Jeanine Pirro attempted to issue a subpoena to Powell for information related to the project, but was blocked by a federal judge who found the subpoenas lacked proper legal basis. Pirro said she would appeal the ruling.
Trump said Wednesday that the investigation must continue and characterized the renovation project as emblematic of either corruption or gross incompetence at the central bank.
“What they’ve done to that, it is probably corrupt, but what it really is is incompetent, and we have to show the incompetence of that,” Trump said.
The confirmation of Warsh as Powell’s successor faces its own complications in the Senate.
Senator Thom Tillis of North Carolina has publicly stated that he will block Warsh’s nomination from advancing out of the Senate Banking Committee until the federal investigation into Powell is fully resolved. Because Tillis sits on the committee, his opposition has the practical effect of stalling the nomination process and potentially delaying any leadership transition at the Fed.
That dynamic has created a situation in which the very investigation Trump wants to continue is also the primary obstacle preventing his chosen Fed chair from being confirmed.
Beyond the personnel dispute, Trump repeated his longstanding call for the Federal Reserve to cut interest rates and expressed confidence that Warsh would deliver on that front once confirmed.
The president has consistently argued that interest rates are too high and have been a drag on economic growth, a position that puts him in direct conflict with Powell’s more cautious approach to monetary policy.
The Fed under Powell has maintained a patient stance on rates, keeping borrowing costs steady while monitoring inflation and the economic impact of the Iran war. Trump has framed Warsh’s nomination in part as a way to bring rate policy more in line with his preferences.
The threat to fire Powell adds to an already significant pattern of political pressure on the Federal Reserve that has drawn concern from economists and market observers who view central bank independence as critical to long-term economic stability.
Last year, Trump attempted to remove Fed Governor Lisa Cook following accusations related to mortgage improprieties. That effort has been unsuccessful so far, with the case argued before the U.S. Supreme Court and a decision still pending.
The combination of a threatened firing, an active federal investigation, a stalled Senate confirmation, and repeated calls for lower rates has created an unprecedented level of political tension surrounding the nation’s central bank at a moment when monetary policy decisions are carrying significant economic weight.
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President Donald Trump escalated his long-running conflict with Federal Reserve Chair Jerome Powell on Wednesday, threatening to remove him from office if he remains as a Fed governor after his successor is confirmed.
Trump made the remarks during an appearance on Fox Business, where he said he had held back from firing Powell previously but would act if Powell chose to stay at the central bank in any capacity after his chairmanship ends.
“Then I’ll have to fire him,” Trump said. “If he’s not leaving on time, I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial. I want to be uncontroversial.”
Powell’s Term and the Transition Question
Powell’s term as Federal Reserve chair expires on May 15, and Trump has nominated former Fed Governor Kevin Warsh as his successor. The Senate confirmation process for Warsh is still underway.
While Powell’s chairmanship is nearly over, he retains two years remaining on his separate term as a member of the Fed’s Board of Governors.
Most outgoing Fed chairs have historically departed the institution entirely after being replaced, but Powell has declined to commit to doing so under repeated questioning.
Powell has indicated he will remain in his role until the ongoing investigation into the Fed’s headquarters renovation is resolved and a confirmed successor is in place, a position he has maintained publicly as a matter of institutional principle.
The Headquarters Investigation Remains a Flashpoint
The political tension around Powell’s departure has been significantly complicated by a federal investigation into the renovation of the Federal Reserve’s Washington headquarters.
U.S. Attorney for the District of Columbia Jeanine Pirro attempted to issue a subpoena to Powell for information related to the project, but was blocked by a federal judge who found the subpoenas lacked proper legal basis. Pirro said she would appeal the ruling.
Trump said Wednesday that the investigation must continue and characterized the renovation project as emblematic of either corruption or gross incompetence at the central bank.
“What they’ve done to that, it is probably corrupt, but what it really is is incompetent, and we have to show the incompetence of that,” Trump said.
Tillis Blockade Complicates Warsh Confirmation
The confirmation of Warsh as Powell’s successor faces its own complications in the Senate.
Senator Thom Tillis of North Carolina has publicly stated that he will block Warsh’s nomination from advancing out of the Senate Banking Committee until the federal investigation into Powell is fully resolved. Because Tillis sits on the committee, his opposition has the practical effect of stalling the nomination process and potentially delaying any leadership transition at the Fed.
That dynamic has created a situation in which the very investigation Trump wants to continue is also the primary obstacle preventing his chosen Fed chair from being confirmed.
Trump Pushes for Lower Interest Rates
Beyond the personnel dispute, Trump repeated his longstanding call for the Federal Reserve to cut interest rates and expressed confidence that Warsh would deliver on that front once confirmed.
The president has consistently argued that interest rates are too high and have been a drag on economic growth, a position that puts him in direct conflict with Powell’s more cautious approach to monetary policy.
The Fed under Powell has maintained a patient stance on rates, keeping borrowing costs steady while monitoring inflation and the economic impact of the Iran war. Trump has framed Warsh’s nomination in part as a way to bring rate policy more in line with his preferences.
A Broader Battle Over Fed Independence
The threat to fire Powell adds to an already significant pattern of political pressure on the Federal Reserve that has drawn concern from economists and market observers who view central bank independence as critical to long-term economic stability.
Last year, Trump attempted to remove Fed Governor Lisa Cook following accusations related to mortgage improprieties. That effort has been unsuccessful so far, with the case argued before the U.S. Supreme Court and a decision still pending.
The combination of a threatened firing, an active federal investigation, a stalled Senate confirmation, and repeated calls for lower rates has created an unprecedented level of political tension surrounding the nation’s central bank at a moment when monetary policy decisions are carrying significant economic weight.
The post Trump Threatens to Fire Powell If the Fed Chair Doesn’t Leave Office Voluntarily appeared first on .
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