Trump Warns Powell of Firing, Backs Kevin Warsh as Next Federal Reserve Chair
Trump threatens to fire Powell as the Fed chair refuses to resign amid the probe.
The long-running conflict between Donald Trump and Jerome Powell intensified further as Trump declared that Powell would be “fired” if he did not step down at the end of his term. The remarks mark a sharp escalation in tensions between the White House and the Federal Reserve, raising fresh concerns about the independence of the US central bank amid political pressure.
Trump also reiterated his support for Kevin Warsh as a potential successor, expressing hope that his nomination as the next Federal Reserve chair would receive Senate approval. At the same time, he confirmed that there are no plans to drop the ongoing probe into Powell, stating that authorities “have to find out what happened", signalling a firm stance on continuing the investigation.
The probe, launched by the United States Department of Justice in January, is reportedly linked to the costly renovation of the Federal Reserve’s headquarters. Trump has previously criticised the project, suggesting excessive spending and delays, which he claims warrant further scrutiny. The investigation has added another layer of tension to an already strained relationship between the administration and the central bank leadership.
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The move has triggered strong reactions from across the political and economic spectrum. Former Federal Reserve Chairs Janet Yellen, Ben Bernanke, and Alan Greenspan issued a rare joint statement warning that such actions could undermine the institution’s independence. Their response reflects broader concerns that political interference could weaken confidence in monetary policy decision-making.
Despite mounting pressure, Powell has made it clear that he has no intention of stepping down while the investigation is ongoing, stating he will continue to serve until a successor is formally confirmed. The standoff comes against the backdrop of policy disagreements, with Trump advocating for deeper interest rate cuts while the Federal Reserve has maintained rates in the 3.5%–3.75% range. As the dispute unfolds, it underscores a critical clash between political authority and central bank autonomy in shaping the US economic landscape.
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