Trump threatens to fire Powell if the Fed chair doesn't leave office on his own

• Powell's chair term ends May 15, 2026, but he has two years remaining as a Fed governor; most past chairs have left entirely, but Powell hasn't confirmed his plans
• An investigation into the Fed headquarters renovation is ongoing, with D.C. U.S. Attorney Jeanine Pirro's subpoena to Powell being blocked by a federal court
• Trump expressed confidence that his nominee Kevin Warsh will lower interest rates and criticized the Fed's renovation project as 'probably corrupt' and 'incompetent'

Summary: Trump Threatens Powell Termination After Fed Chair Term Expires

Key Developments:

President Donald Trump intensified pressure on Federal Reserve Chair Jerome Powell, threatening to fire him if he remains as a Fed governor after his chairmanship ends. Powell's term as chair expires May 15, 2026, though he retains two years remaining on his governor term. Trump has nominated a successor (name not specified in article).

Main Points:

• Trump stated he would remove Powell from his governor position if he doesn't voluntarily leave, saying "Then I'll have to fire him" during a Fox Business interview
• The president claimed he has "held back firing him" to avoid controversy
• Trump reiterated demands for lower interest rates and expressed confidence his nominee will deliver rate cuts

Complicating Factors:

Powell's departure is entangled with an ongoing investigation into the Fed headquarters renovation project. Washington D.C. U.S. Attorney Jeanine Pirro attempted to subpoena Powell for information but was blocked; she is appealing the decision. Senator Thom Tillis (R-N.C.) has indicated he may prevent Powell from leaving the Senate Banking Committee until the probe concludes.

Trump called the renovation "probably corrupt" but emphasized incompetence, stating "we have to show the incompetence of that."

Legal Context:

The article references Trump's prior unsuccessful attempts to remove Powell, with a case previously argued before the U.S. Supreme Court awaiting decision.

Market Implications:

The confrontation creates uncertainty around Fed independence and monetary policy direction, with potential impacts on interest rate expectations and market confidence in central bank autonomy.