Trump Threatens to Fire Powell Over Federal Reserve Investigation
On Wednesday, President Donald Trump stated that the federal investigation into Jerome Powell would proceed, and he would dismiss the Federal Reserve chairman if Powell does not resign. Trump’s comments came during an interview where he addressed Powell’s declaration made in March that he intends to remain in his position until an inquiry regarding the Federal Reserve’s headquarters renovation concludes.
In response to a question from Bartiromo regarding Powell’s intention to stay on after his chairmanship term ends, Trump said, “Well then I’ll have to fire him, OK, 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.”
Powell’s term as chairman is set to finish in May, but he will continue as a member of the Federal Reserve Board until January 31, 2028. The two have had disagreements regarding the Fed’s pace of interest rate cuts, which Trump believes should be faster.
Trump indicated that the Federal Reserve’s headquarters investigation would persist regardless of Powell’s status. He characterized it as more than just a criminal probe, suggesting it also reflects incompetence. “How do you take a little building? I built a hotel for $201 million that’s bigger than that building down the road,” he explained. He expressed concern over the renovation costs, which have reportedly ballooned to around $4 billion, questioning if the project would ever be completed.
He also mentioned that Powell’s successor, Kevin Warch, might not even get to use the renovated building, revealing that, “He said the saddest part of it is they ripped down the most beautiful building of them all.” Trump emphasized that the previous structure had exquisite boardrooms and other notable spaces that were destroyed in the process.
Trump previously confronted Powell about the cost overruns during a tour of the Federal Reserve headquarters in July, when he presented documents revealing the expenditure exceeded initial estimates by roughly 25%. Additionally, Florida Republican Rep. Anna Paulina Luna suggested that Powell misled the Senate Banking Committee regarding the renovations, referring him to the Justice Department over the matter.
