Trump Considers Firing Fed Chair Powell

• Powell's term as Fed chair expires May 15, 2026, with Kevin Warsh nominated as his successor, but Powell has two years left on his governor term and has not indicated whether he will stay
• A probe into the Fed's headquarters renovation has complicated Powell's exit, with a U.S. Attorney's subpoena being blocked by a federal judge and Senator Thom Tillis threatening to block Powell from leaving the Senate Banking Committee until the investigation concludes
• Trump stated he has 'held back firing him' and wants to be 'uncontroversial,' while expressing confidence that Warsh will lower interest rates as the president has repeatedly called for

Summary: Trump Threatens to Fire Fed Chair Powell

Key Developments

President Donald Trump escalated tensions with Federal Reserve Chair Jerome Powell, threatening to remove him from office if he remains as a Fed governor after his chairmanship ends. Powell's term as chair expires May 15, 2026, though he has two years remaining on his governor term.

Main Points

• Trump stated he will fire Powell if the Fed chair doesn't voluntarily leave: "I've held back firing him. I've wanted to fire him, but I hate to be controversial"
• Trump has nominated Kevin Warsh as Powell's replacement
• Unlike most predecessors, Powell has not confirmed whether he will resign from his governor position after stepping down as chair

Investigation Complicates Exit

Powell's departure is complicated by an ongoing investigation into renovations at the Fed's headquarters. Key details include:

• Washington, D.C. U.S. Attorney Jeanine Pirro attempted to subpoena Powell regarding the renovation project but was blocked; she is appealing the decision
• Sen. Thom Tillis (R-N.C.) is reportedly blocking Powell from leaving the Senate Banking Committee until the investigation concludes
• Trump called the renovation project "probably corrupt" and "incompetent," demanding the investigation continue

Market Implications

Trump repeated calls for lower interest rates and expressed confidence that Warsh would deliver rate cuts. The ongoing conflict between the executive branch and Fed leadership creates uncertainty around central bank independence, potentially impacting monetary policy credibility and market stability. The situation remains fluid as Powell's chairmanship end date approaches and a Supreme Court decision on related matters is pending.