Trump threatens Powell as Fed chair term ends May 15

Donald Trump said on April 15 that he would seek to remove Federal Reserve Chair Jerome Powell if Powell stays in the role after his term ends. Trump made the remarks in an interview on Fox Business, repeating his criticism of Powell’s performance and arguing that interest rates should be lower.

The comments came as the White House is pressing for Kevin Warsh to be Trump’s nominee to lead the Federal Reserve. Any nomination would require Senate approval, and the issue has drawn attention as senators scrutinize Trump’s approach to the central bank and its leadership.

Powell’s term is set to conclude on May 15. The possibility that Powell could remain in the position beyond that date has become a focal point in the political debate, particularly because the next chair would be central to decisions on interest rates that affect borrowing costs across the economy.

Separately, the situation is complicated by a criminal investigation involving Powell tied to renovations at the Federal Reserve’s headquarters. The investigation has become part of the Senate’s consideration of how to proceed, even as some lawmakers signal support for Warsh as a potential nominee.

Senator Thom Tillis, a Republican who sits on the banking committee, said he would block Trump’s nominee until the Department of Justice finishes its investigation into Powell. Tillis indicated he supports Warsh’s nomination, but tied his willingness to move forward to the conclusion of the Justice Department process.