Trump Threatens To Fire Powell As Federal Reserve Probe Intensifies
Federal Reserve Chairman Jerome Powell
In an interview Wednesday, President Donald Trump stated he is prepared to terminate Federal Reserve Chairman Jerome Powell if the central bank chief refuses to vacate his position at the end of his chairmanship.
The warning comes amid an escalating federal investigation into a multi-billion-dollar renovation project at the agency’s Washington headquarters.
The friction between the two leaders centers on Powell’s intention to remain on the Federal Reserve Board of Governors after his leadership term concludes in May. While his time as chairman is ending, Powell’s separate term as a board member officially runs until January 31, 2028.
Powell told reporters in March that he does not plan to leave the agency until the investigation into the headquarters’ construction is resolved.
“Well then, I’ll have to fire him, OK, if he’s not leaving on time,” Trump told Maria Bartiromo during the interview. “I’ve held back from firing him. I’ve wanted to fire him, but I hate to be controversial, you know. I want to be uncontroversial.”
President Donald J. Trump
The dispute is fueled by a ballooning renovation budget for the Federal Reserve’s main building. During a July 24 tour of the site, Trump presented Powell with documents indicating that project costs had reached $3.1 billion, representing a 25% cost overrun. Trump suggested the final price tag could reach $4 billion and characterized the project as a management failure.
“It’s more than a criminal probe. It’s a criminal probe, I guess, but it’s also a probe of incompetence,” Trump said, comparing the project to his own past real estate ventures. “I built the Trump Hotel… around $200 million in construction. They’re gonna spend maybe $4 billion and you know what? I’m not sure the thing’s ever gonna open.”
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Trump further said that beautiful, historic boardrooms within the original structure were unnecessarily destroyed during the process. He confirmed that the federal inquiry into the matter would proceed regardless of whether Powell remains at the Fed.
The legal pressure on Powell has also moved to Capitol Hill. In July, Representative Anna Paulina Luna (R-FL) referred Powell to the Justice Department, alleging he provided false testimony to the Senate Banking Committee regarding the renovations.
The standoff follows years of public disagreement between the President and the Federal Reserve over interest rate policy. Trump has frequently criticized Powell for failing to cut rates at the pace the administration has requested.
While Trump has already named Kevin Warsh as his nominee for the next chairman, Powell’s refusal to step down from the board entirely could create an unprecedented legal and administrative showdown at the nation’s central bank.
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Trump Threatens To Fire Powell As Federal Reserve Probe Intensifies