Trump threatens to fire Fed Chair Powell if he stays after term

Donald Trump warned on Fox Business that he will “have to fire” Federal Reserve Chair Jerome Powell if the former Fed chief does not leave the post when his term ends in mid‑May [2]. Powell’s term as chair expires around May 15, but he can remain in the Federal Reserve Board of Governors until a successor is confirmed, a scenario that would allow him to stay on the board until 2028 [1].

The president’s threat follows a Justice Department investigation into alleged cost overruns on the Fed’s headquarters renovation, which Powell says he will not abandon until the probe is “fully, transparent, and final” [1]. Trump’s administration has already opened the investigation and sought to remove Fed Governor Lisa Cook, adding pressure on the independent central bank [1][2]. Meanwhile, Trump has nominated former Treasury official Kevin Warsh to replace Powell as chair, but the Senate must confirm the pick. Warsh faces a hearing on the Banking Committee next Tuesday, and his confirmation is uncertain as some lawmakers, including Republican Senator Tom Tilson, have pledged to block the nomination while the DOJ probe continues [1][2].

If the Senate stalls Warsh’s appointment, Powell could legally remain as Fed chair beyond his term, giving Trump a lever to push for his removal [2]. Treasury Secretary Scott Besen said Republicans on the committee view Warsh as a strong candidate and expressed optimism about a timely confirmation [1]. Yet critics argue the DOJ investigation is being used as political pressure on the Fed, raising concerns about the institution’s independence [2].

The clash pits the president’s desire for a more aggressive rate‑cutting stance against the Fed’s statutory autonomy. How the Senate votes on Warsh—and whether the investigation is allowed to proceed—will determine if Powell stays on the board or is forced out, and could set a precedent for future executive attempts to influence monetary policy.