U.S. President Donald Trump has escalated his confrontation with Federal Reserve Chair Jerome Powell, warning that he will dismiss him if he does not step down at the end of his term next month.
Speaking in an interview with Fox Business, Trump made it clear that he is prepared to act if Powell does not leave his position voluntarily.
“If he doesn’t leave on time, I’ll have to fire him,” Trump said, adding that he had previously considered removing Powell but avoided doing so to limit controversy.
Powell’s Term Nears End
Powell’s term as chair of the Federal Reserve is set to expire on May 15. Trump has already nominated Kevin Warsh as his preferred successor.
However, while Powell’s leadership term is ending, he still has two years remaining in his role as a Fed governor. Traditionally, most former chairs step down entirely once replaced, but Powell has not clearly stated whether he intends to remain.
Federal Probe Adds Pressure
The situation is further complicated by an ongoing investigation led by Jeanine Pirro, U.S. Attorney for the District of Columbia. The probe is examining whether Powell may have made misleading statements to Congress regarding a redevelopment project at the Fed’s headquarters in Washington.
Both Trump and Pirro have indicated that the investigation will continue regardless of its potential impact on Warsh’s confirmation process.
Trump criticised the situation, suggesting possible misconduct but emphasising what he described as broader incompetence. “What they did may be corrupt, but more importantly, it shows incompetence—and that needs to be proven,” he said.
According to Politico, Warsh is scheduled to appear before the Senate Banking Committee on April 21, as the political and institutional standoff continues to unfold.