Donald Trump escalated his pressure campaign against Federal Reserve Chair Jerome Powell on Tuesday, threatening to remove him from office if he remains in the role beyond his May 15 departure date. The threat comes as the Justice Department investigates Powell over renovations at the Fed's Washington headquarters, complicating the Senate confirmation process for Trump's preferred successor, Kevin Warsh.
"I'll have to fire him, OK, if he's not leaving on time," Trump said in a Fox Business interview. "I've held back firing him. I wanted to fire him, but I had to be controversial, you know? I want to be uncontroversial."
Trump reiterated longstanding criticism that Powell is performing poorly and should be cutting interest rates, a central complaint since Trump took office in January. The president has consistently clashed with the Fed chair over monetary policy, arguing for lower rates to stimulate economic activity.
The DOJ investigation into Powell threatens to derail Warsh's path to confirmation. Republican Senator Thom Tillis of North Carolina, a member of the banking committee, said he will block the nomination until the investigation concludes. Tillis supports Warsh but called the Powell probe "reaching the point of absurd."
Powell's term expires May 15, leaving roughly a month for the Senate to resolve the standoff. The uncertainty reflects growing tension over Trump's attempt to reshape the Fed's leadership and direction.
Author James Rodriguez: "Trump's threats to fire Powell and the concurrent criminal investigation into the Fed chair create an unprecedented pressure dynamic that risks undermining the Fed's independence and complicating what should be a straightforward leadership transition."
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