Donald Trump has threatened the Chair of the Federal Reserve of the United States, Jerome Powell, as the May 15 deadline approaches over leadership succession and a lingering criminal investigation. Senate Republicans now push to clear a procedural roadblock as the White House shows an unprecedented willingness to challenge central bank independence.
Donald Trump threatens to fire Jerome Powell if he doesn’t resign
US President Donald Trump has threatened to fire Jerome Powell if he does not step aside at the end of his term in May. Trump issued the threat during a Fox Business interview after a reporter asked about Powell’s plan to remain in the post until the Senate confirms his successor, Kevin Warsh. “Then I’ll have to fire him,” Trump said.
The bitterness stems from Powell’s reluctance to cut interest rates, and now the latest friction centers on the transition of power. Trump acknowledged he had previously restrained himself from taking such action. “I’ve held back from firing him. I’ve wanted to fire him, but I hate to be controversial,” Trump said.
Powell’s term expires on May 15. He plans to stay on temporarily if the Senate does not confirm Warsh before that date. “That’s what the law calls for. That’s what we’ve done on several occasions,” Powell has said.
After all, Senator Thom Tillis, a Republican on the banking committee, threatens to block Warsh’s confirmation. Tillis demands that the Department of Justice drop a criminal investigation into Powell regarding the Federal Reserve building renovation. Senate Majority Leader John Thune addressed the probe, too. “I think it’s in everybody’s best interest to wrap up the investigation,” Thune said (via BBC).
Additionally, Senator Mike Rounds also told reporters on Capitol Hill that the investigation is not “serving our purpose, which is to help the president get the next Federal Reserve chairman he wants.” Trump expressed hope that Tillis will drop his opposition to the new appointment. He said the senator “is an American… he knows what to do.” However, Trump refused to halt the investigation into Powell. “Don’t you think we have to find out what happened there? I have to find out,” Trump told Fox Business.
Donald Trump appointed Jerome Powell to lead the Federal Reserve in 2017. Joe Biden reappointed him in 2021.
Originally reported by Devanshi Basu for Mandatory.
