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Trump Threatens to Fire Powell as Warsh Hearing Nears

A DOJ probe with a Senate hold now clouds the path to a new Fed chair.

Overview

  • Trump said Wednesday in a Fox Business interview that he will fire Jerome Powell if Powell stays after his chair term ends on May 15.
  • Powell has said he would serve as chair pro tempore if no successor is confirmed, a temporary role allowed by Federal Reserve practice.
  • Kevin Warsh’s confirmation hearing is set for April 21, yet Sen. Thom Tillis says he will block advancement until the Justice Department ends its investigation.
  • Despite a judge quashing subpoenas tied to renovation cost overruns, DOJ is appealing and investigators tried to tour the site Tuesday before a Fed lawyer told them to leave.
  • Legal experts note a president can remove a Fed official only for cause, so any attempt to fire Powell could trigger a court fight and raise fresh concerns about the central bank’s independence.