Trump Threatens to Remove Fed Chair Powell if He Stays Beyond May
US President Donald Trump has issued a warning that he may fire Federal Reserve Chair Jerome Powell if Powell does not vacate his position at the end of his term in May.
The two have been engaged in a tense dispute over Powell's hesitation to reduce the central bank's interest rates, despite Trump's repeated demands for cuts.
Powell's term is set to expire on 15 May, but he intends to remain in office until his successor, Kevin Warsh, receives Senate confirmation.
"Then I'll have to fire him," Trump told Fox Business when asked about Powell's plan to stay in the role.
"I've held back firing him. I've wanted to fire him, but I hate to be controversial," Trump added.
Senator Tillis Opposes Warsh Confirmation Over Investigation
Thom Tillis, a key Republican senator on the committee responsible for Federal Reserve chair nominations, has threatened to block Warsh's confirmation. Should Warsh not be confirmed before Powell's term ends, Powell plans to continue temporarily in the role.
"That's what the law calls for. That's what we've done on several occasions," Powell stated.
Tillis has conditioned his support for Warsh's appointment on the cessation of a criminal investigation into Powell related to the renovation of the Federal Reserve building.
Trump expressed hope that Tillis would withdraw his opposition, noting,
"He is an American… he knows what to do."
However, Trump emphasized he is unwilling to have the investigation into Powell dropped.
"Don't you think we have to find out what happened there? I have to find out," Trump said to Fox Business.
Treasury Secretary Optimistic About Warsh Confirmation
Responding to Trump's remarks on Wednesday, Treasury Secretary Scott Bessent expressed optimism that Warsh would be confirmed before 15 May.
Speaking at a White House press briefing, Bessent stated,
"I am sure Senator Tillis wants to do the best thing for the Federal Reserve for the American people.
He has publicly said Kevin Warsh is a great candidate for the chair, so let's get to the hearings and see where we are."
Trump Criticizes Powell Over Federal Reserve Renovation and Interest Rate Policy
Trump has accused Powell of mismanaging the Federal Reserve building renovation, alleging that billions of dollars were spent on a project that could have been completed for tens of millions.
He has previously called Powell a "knucklehead" and claimed he was "doing a lousy job" after Powell repeatedly declined to lower interest rates as Trump requested.
Following reports in 2025 that Trump had considered firing Powell, stock markets and the US dollar experienced declines.
The president quickly denied plans to remove Powell, stating,
"It's highly unlikely unless he has to leave for fraud."
If Trump were to fire Powell, it would represent a significant departure from precedent, marking the first time a Federal Reserve chair has been dismissed.
Background on Powell's Appointment
Trump appointed Powell as Federal Reserve Chair during his first term in 2017, praising his "steady leadership, sound judgement, and policy expertise." Powell was reappointed by President Joe Biden in 2021.
