has threatened to remove Federal Reserve Chair Jerome Powell if he does not step down when his term ends in May, escalating tensions between the White House and the central bank.
Trump and Powell have been in ongoing conflict over interest rates, with the former president repeatedly urging the Federal Reserve to cut rates. Powell, however, has resisted those calls, prioritising economic stability over political pressure.
Powell’s term officially ends on 15 May, but he plans to remain in office until a successor is confirmed by the Senate. Trump has backed former Fed governor Kevin Warsh as his preferred replacement.
Speaking to Fox Business, Trump said he would act if Powell refused to leave. “Then I’ll have to fire him,” he said, adding that he had previously considered removing him but avoided doing so due to political sensitivity.
The appointment process has become increasingly complicated due to opposition in the Senate. Republican Senator Thom Tillis has warned he may block Warsh’s confirmation unless a criminal investigation into Powell’s handling of Federal Reserve building renovations is dropped.
Tillis, who sits on the committee overseeing Fed nominations, has insisted that any appointment must proceed through proper hearings. He has also stated that Warsh is a strong candidate but linked his support to the resolution of the investigation.
