US President Donald Trump is back at his attacks on Federal Reserve Chair Jerome Powell, saying he would remove him if he does not step aside once his term ends next month. “Then I’ll have to fire him,” Trump told Fox Business’ on Wednesday. Powell’s tenure as chair expires on May 15, but Trump’s nominee, Kevin Warsh, has yet to be confirmed by the Senate.
If confirmation is delayed, Powell could remain in charge temporarily as “pro tempore” chair under Federal Reserve rules. Powell himself confirmed in March that he would stay on in that interim capacity if needed, saying, “That’s what the law calls for. That’s what we’ve done on several occasions.” A confirmation hearing for Warsh is scheduled for April 21, but Republican Senator Thom Tillis has said he will not support the nomination until a Department of Justice investigation into Powell is completed, adding another layer of uncertainty.
Probe and spending row
Trump has always criticised Powell for not cutting interest rates aggressively enough, but his latest attacks have also focused on the Fed’s $2.5 billion renovation of its Washington headquarters. Defending his stance, Trump said, “Does that mean we stop a probe of a building that I would have done for $25 million that’s going to cost maybe $4 billion? Don’t you think we have to find out what happened there? I have to find out.”
The investigation is being led by US Attorney Jeanine Pirro. Trump acknowledged the probe could complicate Warsh’s confirmation but insisted it should continue. The Fed has attributed the cost overruns to “unforeseen conditions,” including asbestos, soil contamination, and a higher-than-expected water table.
Trump calls Powell ‘a disaster’
Trump did not hold back in his criticism, calling Powell “a disaster” and alleging mismanagement. “Here’s a man who took this little, tiny building and a couple of other little, tiny complex, and he’s spending more than $3 billion. I want to know who the contractor is, because that contractor is making billions of dollars, perhaps.”
“It is probably corrupt, but what it really is is incompetent, and we have to show the incompetence of that,” he added. Trump admitted he has so far stopped short of firing Powell. “I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial,” he said.
Powell refuses to step down
Powell, however, has made it clear he will not resign while the investigation is ongoing. “I have no intention of leaving the Board until the investigation is well and truly over with transparency and finality,” he said last month.
While his chairmanship ends in May, Powell’s term as a Federal Reserve governor runs until January 2028, and he has not yet decided whether he will remain on the Board beyond his current role.