President Donald Trump said Wednesday he would remove Jerome Powell from his position as a Federal Reserve governor if Powell does not leave the central bank after his term as chair concludes. During an interview on Fox Business, Trump also stated that an investigation into the renovation of the Federal Reserve’s headquarters must proceed.
Powell’s four-year term as chair is set to expire on May 15. The president has nominated former Fed Governor Kevin Warsh as his successor.
“Then I’ll have to fire him,” Trump said during the interview. “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.”
While Powell’s leadership term is ending, his term as a member of the Federal Reserve’s Board of Governors does not expire for another two years. Historically, most Fed chairs have resigned from the board after a new chair is confirmed. Powell has not publicly stated his plans regarding the remainder of his term as a governor.
The confirmation process for a new chair has been connected to an investigation into a construction project at the Fed’s headquarters. According to reports, Sen. Thom Tillis (R-N.C.) has indicated he will prevent Warsh’s nomination from advancing out of the Senate Banking Committee until the probe is finished.
In relation to the investigation, U.S. Attorney for the District of Columbia Jeanine Pirro sought to issue a subpoena to Powell for information regarding the renovation. A judge denied the request, a decision Pirro has said she will appeal.
In accordance with Federal Reserve policy, Powell has stated he will remain in his role as chair until a successor is confirmed by the Senate.
During the Fox Business interview, Trump commented on the renovation project. “What they’ve done to that so it is probably corrupt, but what it really is is incompetent, and we have to show the incompetence of that,” he said.
The president also reiterated his previous calls for the Federal Reserve to lower interest rates and said he believed Warsh would implement such policies if confirmed.
