Trump threatens to fire Powell if he overstays his term

President Donald Trump’s standoff with Federal Reserve Chair Jerome Powell has intensified recently, with Trump declaring he “will have to fire” the central bank leader if he stays beyond his term.

Powell’s term as chair ends May 15, but he could remain on the Fed’s board as a governor until 2028, a move Trump opposes.

JPow has even said that he would remain in his governor seat until the Justice Department wraps up its probe into the Fed’s headquarters renovation.

Trump’s comments come as the Fed chair nominee, Kevin Warsh, is set to face a Senate confirmation hearing on Tuesday. However, the nomination is facing pushback, with Senator Thom Tillis stating he won’t vote on it until the DOJ investigation into Powell concludes.

Any delay to Warsh’s appointment could force Powell to remain as chair “pro tempore,” per Fed rules, and Trump does not want that either.

The DOJ is investigating Powell about the $2.5 billion renovation of the Fed’s Washington headquarters. Trump claims he could have completed it for $25 million and has labeled the spending as “incompetent” and “corrupt.”

Trump’s threats against Powell stem from their disagreement over interest rate cuts. He has made a similar attempt to remove Fed Governor Lisa Cook, a case currently before the Supreme Court.

Trump has the power to remove Fed officials, but has to show “for cause,” according to Section 10 of the Federal Reserve Act.