Here's a situation that's becoming a bit of a tradition: President Donald Trump is once again talking about firing Federal Reserve Chair Jerome Powell. This time, he's linking it to a probe into the Fed's headquarters renovation and what happens when Powell's term runs out next month.
In an interview with Maria Bartiromo on Fox Business on Wednesday, Trump said he'd have to dismiss Powell if the Fed chair continues to serve as a governor after his term expires on May 15. Under Fed rules, Powell could stay on temporarily as chair if Trump's nominee, Kevin Warsh, isn't confirmed by then. But Trump isn't having it. "Then I'll have to fire him," he stated.
In a classic Trumpian aside, he added, "I've wanted to fire him, but I hate to be controversial. I want to be uncontroversial." Right.
The president also doubled down on the need to continue the investigation into the renovation of the Federal Reserve's headquarters, which he has criticized as potentially corrupt and incompetent. "Does that mean we stop a probe of a building that I would have done for $25 million that's going to cost maybe $4 billion? Don't you think we have to find out what happened there?" he questioned. "I have to find out," he added.
Powell had previously said he wouldn't step down until the investigation was "truly over." So, we've got a bit of a standoff here.
Warsh's Nomination Hits Senate Snags
This all comes as Trump's pick to replace Powell, Kevin Warsh, is scheduled to testify before the Senate Banking Committee on April 21. Warsh's financial disclosures show assets between $131 million and $209 million, which might make him wealthier than Powell. Trump has previously expressed confidence that Warsh could supercharge the U.S. economy, potentially achieving growth of more than 15%.
But Warsh's path to confirmation isn't smooth. Republican Senator Thom Tillis (R-NC) has vowed to stall all Federal Reserve nominations while the Trump administration's Justice Department probe into Powell over the Fed building renovation continues. That's putting the brakes on the process.
On the other side of the aisle, Democratic Senator Elizabeth Warren (D-Mass.) came out against Warsh's nomination on Tuesday. She argued the Senate shouldn't move forward while Trump is allegedly trying to influence the Fed, calling Warsh a "Trump sock puppet."
Trump, for his part, expressed confidence on Wednesday that the Senate Banking Committee would confirm Warsh next week, saying, "Tillis is an American; he knows what to do." We'll see how that plays out.
The Probe Isn't Going Away
Powell's term as a member of the Fed Board lasts until January 31, 2028, but his chairmanship is the immediate issue. The investigation into the renovation is intensifying. Back in February, reports indicated the Federal Reserve was fighting two subpoenas in a criminal investigation into Powell, asking a judge to dismiss them in sealed proceedings and arguing they might be overly broad or legally privileged.
The Department of Justice had threatened the Fed with a criminal indictment in early January over testimony related to the renovation costs and issued those subpoenas. So, this isn't some minor audit; it's a serious legal tussle.
What we're watching now is a collision of deadlines, nominations, and investigations. Powell's term ends May 15. Warsh's confirmation is stalled. The probe continues. And Trump is making it clear he's ready to pull the trigger if Powell doesn't leave voluntarily. It's a high-stakes game of musical chairs at the world's most powerful central bank, with a multi-billion-dollar building renovation and a criminal investigation providing the soundtrack.
