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Trump Says He Has No Plan to Fire Fed Chair Powell as DOJ Probe Continues

The remarks point to a wait-and-see posture during a probe of the Fed’s headquarters renovation.

Overview

  • The Justice Department sent a subpoena to the Federal Reserve on Jan. 9 tied to the headquarters renovation and related testimony, according to officials.
  • Washington U.S. Attorney Piro said repeated inquiries to the Fed went unanswered, prompting the move to legal process.
  • Powell disclosed in a Jan. 11 video that he is a subject of the investigation and called the step unprecedented in the context of pressure from the administration.
  • The White House denied that President Trump directed the probe, as a Wall Street Journal report described him scolding prosecutors days earlier for not pursuing his “priority targets.”
  • Trump told Reuters he would “watch and see,” leaving future action toward Powell unresolved and dismissing criticism from lawmakers and concerns about central-bank independence.