Trump Vows to Remove Powell if He Refuses to Step Down

U.S. President Donald Trump has intensified his standoff with Federal Reserve Chair Jerome Powell, threatening to remove him from the central bank’s Board of Governors if he refuses to step down after his term expires next month.

In a series of remarks, Trump said he would “have to fire him” if Powell remains on the board beyond May 15, escalating a long-running clash over interest rate policy and the independence of the U.S. central bank.

The dispute is unfolding alongside an ongoing Justice Department investigation into a costly renovation project at the Federal Reserve headquarters. The probe, led by the U.S. Attorney Jeanine Pirro is examining alleged cost overruns and Powell’s testimony to lawmakers.

While no criminal charges have been filed, critics; including some lawmakers, argue the investigation is politically motivated and part of a broader effort to pressure Powell. A federal judge has already questioned the basis of the probe, citing a lack of evidence in related subpoenas.

Powell has denied wrongdoing and signalled he may remain in his role until a successor is confirmed, setting up a potential constitutional and legal confrontation over whether a president can dismiss a sitting Fed governor.

The controversy is also casting a shadow over Trump’s nominee to lead the Fed, Kevin Warsh. Warsh, who is expected to align more closely with Trump’s push for lower interest rates, faces growing resistance in the Senate.

Republican Senator Thom Tillis has vowed to block Warsh’s confirmation until the investigation into Powell is resolved, creating a major obstacle ahead of a scheduled Senate hearing.

The escalating clash has raised concerns among economists and policymakers about political interference in the Federal Reserve, which has traditionally operated independently of the White House. Analysts warn that any attempt to remove Powell could trigger legal battles and unsettle financial markets.

With Powell unwilling to step aside and Trump doubling down on both the investigation and his removal threats, the situation sets the stage for a high-stakes showdown that could redefine the limits of presidential power over the U.S. central bank.