&imwidth=800&imheight=600&format=webp&quality=medium "Trump threatens to fire Fed chair Powell if he doesn’t leave on time")
US President Donald Trump on Wednesday threatened to fire Federal Reserve Chair Jerome Powell if he does not step aside at the end of his term in May and said the probe into the renovation of the central bank’s headquarters needs to continue. Trump and Powell have been embroiled in a spat over the latter’s reluctance to cut the central bank’s interest rate, despite repeated calls.
Powell’s term expires on 15 May, but he is planning to remain in post until his successor, Kevin Warsh, is confirmed by the Senate.
“Then I’ll have to fire him,” said Trump when asked about Powell’s plans to stay on in the job.
“I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial,” Trump told Fox Business.
Thom Tillis, an influential Republican senator on the committee which oversees nominations for the Federal Reserve chair, has threatened to block Warsh’s confirmation. If Warsh is not confirmed before Powell’s term expires, he plans to stay on temporarily in the post.
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“That’s what the law calls for. That’s what we’ve done on several occasions,” Powell has said.
Tillis has warned that he will not let Warsh’s appointment go ahead unless a criminal investigation into the renovation of the Federal Reserve building against Powell is dropped.
Trump said he was not prepared to have the probe into Powell dropped.
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“Don’t you think we have to find out what happened there? I have to find out,” he said.
Meanwhile, Treasury Secretary Scott Bessent said on Wednesday that he is very optimistic of Warsh being
confirmed before 15 May.
Speaking at a White House press briefing, he said, “I am sure Senator Tillis wants to do the best thing for the Federal Reserve for the American people.”
“He has publicly said Kevin Warsh is a great candidate for the chair, so let's get to the hearings and see where we are.”
Trump has accused Powell of mishandling the Federal Reserve renovation, spending billions of dollars on a project which he suggested could have been carried out for tens of millions.
Trump previously branded Powell a ‘knucklehead’ and claimed he was ‘doing a lousy job.’
If Trump decides to fire Powell, it would be the first time a Federal Reserve chair has been fired.
Trump appointed Powell to lead the Federal Reserve during his first term in 2017, praising his steady leadership, sound judgement, and policy expertise.
