Trump threatens to fire Fed chair Powell if he doesn’t step down ‘in time’
President vows to remove central bank leader if he doesn't step down 'in time' amid ongoing investigation.
In a Fox Business interview, President Donald Trump escalated a long-running conflict with the Federal Reserve, explicitly threatening to fire Chair Jerome Powell. Trump stated he would remove Powell if the central bank leader does not step down 'in time,' clarifying that he would not halt an ongoing Justice Department investigation into Powell. The President framed the potential firing as a reluctant move, saying, 'I've held back firing him. I've wanted to fire him, but I hate to be controversial.'
This creates a significant institutional clash. While Powell's term as Fed Chair expires in May 2026, his separate term as a member of the Board of Governors extends until 2028. Powell has indicated that if a successor is not confirmed by May, he would serve as Chair pro tempore—a temporary designation used in the past. Furthermore, Powell has stated he has 'no intention' of resigning from the Board until the DOJ's investigation into a Fed building renovation project is 'well and truly over,' directly linking his tenure to the probe's conclusion.
- Trump explicitly threatened to fire Fed Chair Jerome Powell in a televised interview, citing Powell's failure to step down 'in time.'
- Powell's term as Chair ends in May 2026, but his Board of Governors seat lasts until 2028, creating a potential legal and procedural battle.
- Powell vows not to resign from the Board until a DOJ investigation into a Fed building project is concluded, tying his departure to the probe.
Why It Matters
Threatens Fed independence, creates market uncertainty, and sets a precedent for political interference in central banking.