US President Donald Trump has escalated his standoff with Federal Reserve Chair Jerome Powell, warning he could remove him from the central bank’s Board of Governors if Powell refuses to step down after his leadership term ends next month.
Powell’s tenure as chair is set to expire on May 15, but his separate role as a Fed governor runs through 2028. In a televised interview on Fox, Trump said he had previously held back from dismissing Powell but would act if the Fed chief remains on the board, intensifying an already fraught transition at the US central bank.
Ongoing Court Case
Related to the standoff is a controversial investigation led by US Attorney Jeanine Pirro into alleged misstatements tied to a costly Federal Reserve building renovation project under Jerome Powell.
The investigation is now entangled with the confirmation of Kevin Warsh, Trump’s pick to succeed Powell as Fed chair with some lawmakers arguing the probe undermines the independence of the Federal Reserve.
Republican Senator Thom Tillis has signaled he may block Warsh’s confirmation unless the investigation is dropped, calling it a politically motivated challenge to the central bank’s autonomy.
Trump has repeatedly criticized Powell for resisting aggressive interest rate cuts, while Fed officials including some appointed by Trump have maintained that inflation remains above the bank’s 2% target, limiting the scope for easing.
Powell, for his part, has indicated he intends to remain on the board of governors until the investigation concludes, emphasizing institutional stability and transparency.
