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Trump Threatens to Fire Powell as DOJ Probe Imperils Fed Succession

The remark highlights a DOJ probe that has become the key obstacle to a clean handover at the central bank.

Overview

  • Trump said Wednesday on Fox Business that he will fire Jerome Powell if Powell stays at the Fed after his chair term ends May 15.
  • Kevin Warsh has a Senate Banking Committee hearing set for Tuesday, but Sen. Thom Tillis says he will block the nomination until the DOJ probe ends.
  • The Justice Department investigation continues despite a judge quashing subpoenas, and investigators tried to tour the Fed construction site Tuesday.
  • Powell has said he will serve as acting chair if no successor is confirmed and he will remain on the Board until the probe is “truly over,” a stance that could test limits on presidential removal.
  • Several Republicans urge prosecutors to wrap up the case as renovation costs rose from a $1.4 billion plan to more than $2.4 billion, which the Fed blames on asbestos, soil toxins and a high water table.