Trump threatens to fire Powell if he doesn't step aside as Fed chair

President Donald Trump said his administration doesn't plan to drop the Department of Justice's probe into Federal Reserve Chair Jerome Powell, and again threatened to fire him if he stays in the role past mid-May.

Trump has nominated former Federal Reserve Governor Kevin Warsh to the position, but Powell has said he'll stay in the job on a temporary basis if Warsh isn't confirmed before May 15, when Powell's term as chair ends.

“Then I’ll have to fire him,” Trump told Fox Business on April 15 in response to a question about Powell potentially staying on. "If he's not leaving on time — I've held back on firing him. I've wanted to fire him. But I hate to be controversial. I want to be uncontroversial."

Whether Trump would actually be able to fire Powell is unclear. According to the Federal Reserve Act, U.S. presidents have the ability to fire officials from the Federal Reserve's board "for cause." In January, the Supreme Court seemed skeptical of the administration's arguments in a case involving Trump's attempt to fire Fed Governor Lisa Cook over allegations she committed mortgage fraud. Cook denies the allegations.

Trump nominated Warsh to the position, but Warsh has yet to be confirmed by the Senate. After a paperwork delay, Warsh has since filed required financial disclosures, setting up a Senate confirmation hearing next week. However, his confirmation isn't guaranteed. Sen. Thom Tillis, R-North Carolina, vowed to stall any nominations to the Fed until the Justice Department ends its probe into Powell related to the budget for a a major renovation project at the central bank's headquarters.

Former Fed Chairs Janet Yellen, Ben Bernanke and Alan Greenspan called the criminal inquiry "an unprecedented attempt to use prosecutorial attacks to undermine" the central bank's independence in January. Powell himself condemned it in a rare video statement.

Sen. Tim Scott, R-South Carolina, who chairs the Senate Banking Committee, told Fox Business the day prior on April 14 he was confident the Justice Department would "wrap up" its investigation into Powell, and that Warsh would assume the role "in the next few weeks."

But Trump told Fox Business his administration doesn't plan to drop the probe.

"Whether its incompetence, corruption, or both, I think you have to find out," Trump added.

Treasury Secretary Scott Bessent said despite Tillis' opposition to the investigation, he is optimistic Warsh will be confirmed as the Fed's next chair "on time."

“I’m sure Sen. Tillis wants to do the best thing for the Federal Reserve for the American people,” Bessent told reporters during an afternoon news conference April 15. “He has publicly said that Kevin Warsh is a great candidate for the chair, so let’s get to the hearings and see where we are then.”

Even if Warsh is confirmed by May 15, Powell has said he plans to stay on the Fed's Board of Governors, where his term does not end until January 2028, until the Justice Department's investigation is "truly over."

(This story was updated to add new information.)

Reach Rachel Barber at [email protected] and follow her on X @rachelbarber_