Trump again threatens to fire Fed Chair Powell amid ongoing criminal probe

The U.S. president said he would fire Jerome Powell if he does not resign from the Federal Reserve Board of Governors after the end of his chairmanship. In an interview on Fox Business on April 15, U.S. President Donald Trump reiterated the ongoing criminal investigation into Federal Reserve Chair Jerome Powell. He said this would prove Powell 'not capable' and declared that Powell would be fired if he does not relinquish both of his positions at the Fed. Powell's term as Fed chair is set to end in May 2026. However, his term on the Board of Governors extends to 2028. The Board is the Fed's top policy‑making body, consisting of seven members responsible for setting monetary policy, supervising banks, and maintaining financial stability. Disagreements between Trump and Powell have persisted for years, even though Trump nominated Powell to the chair. He criticized Powell for continued rate hikes and for not cutting rates at times he believed would support growth. In January, Powell said federal prosecutors had opened a criminal investigation into him related to a project to renovate the Fed headquarters. Trump’s latest remarks indicate the situation at the Fed will become more complex in the period ahead. His threats to fire, together with the ongoing criminal probe into Powell, could slow the approval process for Kevin Warsh, the candidate Trump has nominated to be the next Fed chair. Senator Thom Tillis has said he will block Warsh’s nomination until the Powell investigation is resolved. U.S. Treasury Secretary Scott Bessent was optimistic Warsh would be confirmed on time. “He is a very good candidate. Republican senators on the Senate Finance and Banking committees are in agreement, and I am optimistic,” he said to reporters on April 15. The hearing for Kevin Warsh is scheduled for April 21. Trump expects Warsh to reduce rates after taking office. Of the seven current governors, three were nominated by former President Joe Biden. Powell was nominated by Trump, but not influenced by the president’s wishes. Even Christopher Waller—another member nominated by Trump—is thought unlikely to support the administration’s rate requests. Typically, Fed chairs leave the Board when their terms end. However, in a press conference last month, Powell said he did not intend to leave the Board until the investigation concluded transparently. He could stay longer, “based on what I think is best for the organization and the people we serve.”