President Donald Trump vowed in an interview that aired Wednesday morning to fire Federal Reserve Chair Jerome Powell if he stayed on as chair beyond the end of his term next month –– even as the confirmation of Powell’s successor seems stalled in the Senate Banking Committee.
“Well then, I'll have to fire him,” Trump told Fox Business host Maria Bartiromo when she asked about Powell saying he would not depart the Federal Reserve until the Justice Department investigation into the Fed's renovation project ends.
“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?” the president continued.
Powell’s term as chair concludes May 15, but he said last month he planned to remain at the helm of the seven-member Board of Governors as "chair pro tem" until his successor is confirmed.
“That is what the law calls for, that’s what we’ve done on several occasions — including involving me — and that’s what we’re going to do in this situation,” Powell told reporters on March 18. “And while I’m at it, on the question whether I will leave while the investigation is ongoing: I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality.”
In an unusual video statement released in January, Powell said the Justice Department had served the central bank with subpoenas and threatened a criminal indictment over his testimony about the $2.5 billion renovation of the Fed's Washington headquarters.
In the recorded message, the Fed chair said he believed that the probe was “a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public rather than following the preferences of the president.”
A federal judge quashed the government’s subpoenas last month after Assistant U.S. Attorney Andrew Massucco conceded that authorities had not discovered evidence of a crime, but U.S. attorney Jeanine Pirro has vowed to appeal.
The Associated Press reported Wednesday that two federal prosecutors and an investigator from Pirro’s office made an unannounced visit to the Fed’s headquarters this week but were turned away.
Requests for comment made to Pirro's office and the attorney representing the Federal Reserve were not immediately returned.
Trump also indicated he thought the investigation into the renovation project should continue.
“It's a criminal probe, I guess, but it's also a probe in incompetence,” Trump said when asked by Bartiromo if he would advise Pirro to drop the investigation into Powell.
The president cited his own history as a real estate developer overseeing hotel construction.
“They're going to spend maybe $4 billion. And you know what? I'm not sure the thing's ever going to open,” Trump said.
He also reiterated during the interview his longstanding push for the Federal Reserve to lower the overnight banking rate –– the target interest rate for overnight loans between banks. The key interest rate often influences long-term borrowing costs on loans for home and car purchases, and impacts how much the federal government has to pay to maintain national debt.
Trump said that he believed the Fed would reduce interest rates once his nominee for the next chair, Kevin Warsh, is confirmed.
On Tuesday, the Senate Banking Committee announced that a confirmation hearing will be held for Warsh on April 21, following the submission of his financial disclosure form.
Trump tapped Warsh, a former Federal Reserve official, for the role in January. However, his nomination has been held up by Sen. Thom Tillis, R-N.C., who has said he would block Warsh’s confirmation from moving forward until the Justice Department probe into Powell ends.
When asked during a White House press briefing Wednesday afternoon about the president's threat to fire Powell, Treasury Secretary Scott Bessent said he was “very optimistic that Kevin Warsh will be the chair of the Fed on time.”
Trump also suggested in the interview that aired Wednesday that Tillis may reverse course on his position, saying that the North Carolina Republican “doesn't want the legacy of having an incompetent guy stay there for longer than is necessary.”
“I know he said what he said and maybe it's true, in which case, I'll have to live with it,” the president said, then adding of Powell, “But not as chairman. This guy is a bad chairman, really bad chairman.”
It was not immediately clear if Trump would still seek to oust Powell if he opted to remain on as a Federal Reserve governor, and an inquiry made to the White House was not immediately returned. Powell's term as governor runs until January 2028.
A request for comment made by Spectrum News to Tillis’ office was not immediately returned.