Trump threatens to fire Fed chair as pressure on Powell escalates

US President Donald Trump has intensified his campaign against Federal Reserve Chair Jerome Powell, saying he would remove him from the central bank’s board if Powell does not step down when his term expires on May 15.

In an interview with Fox Business on Wednesday, Trump made clear he is prepared to act.

“If he’s not leaving on time – I’ve held back firing him, I’ve wanted to fire him, but I hate to be controversial, you know. I want to be uncontroversial, but he will be fired,” he told host Maria Bartiromo.

The remarks sharpen an already tense standoff between the White House and the Federal Reserve, raising fresh questions about the limits of presidential authority over an institution designed to operate independently.

The dispute comes at a delicate moment for the Fed. Trump’s nominee to replace Powell, Kevin Warsh, is awaiting confirmation, with a Senate Banking Committee hearing scheduled for next Tuesday. However, the process faces uncertainty. Senator Thom Tillis has said he will block the nomination until a federal investigation involving Powell is resolved, potentially leaving Powell in place until a successor is approved.

That investigation — centred on cost overruns in a Federal Reserve building renovation project — remains a point of contention. Trump indicated in the interview that there are no plans to scale it back. Powell, for his part, has dismissed the probe as an attempt to undermine the Fed’s independence. In March, a federal prosecutor said the investigation had uncovered no evidence of wrongdoing.

Behind the legal and procedural battle sits a broader policy divide. Trump has repeatedly criticised the Fed for moving too cautiously on interest rate cuts and has signalled a desire for greater influence over monetary policy decisions. He has also made clear that future appointments should align more closely with his economic views.

Control over the Fed’s board is central to that strategy. Of the seven seats, Trump has appointed three members so far. One of them, Stephen Miran, is already serving beyond the official term limit, and his position would likely need to be vacated if Warsh is confirmed.