US President Donald Trump has stepped up his rhetoric against Federal Reserve Chairman Jerome Powell, saying he will consider removing him if he remains in office beyond the end of his term.
“Then I’m going to have to fire him,” Trump told Fox Business.
“I refused to fire him. I wanted to fire him, but I hate being controversial.”
Powell’s term as chairman is set to expire on May 15, but he has indicated he will stay on until his successor is confirmed.
Warsh’s nomination faces a hurdle
Trump nominated Kevin Warsh to replace Powell. But the confirmation process hit a snag, with Senator Thom Tillis vowing to block the nomination.
Tillis linked his opposition to an ongoing Justice Department investigation into the $2.5 billion renovation of the Federal Reserve’s headquarters.
Tillis pledged that he would “oppose the confirmation of any Federal Reserve nominee … until the Justice Department’s inquiry … is fully and transparently resolved.”
The probe into the renovation of the Fed complicates the transition
At the center of the impasse is a criminal investigation into Powell’s handling of the costly renovation project.
The investigation is not about “just the $2.5 billion project,” Trump said, but also about Powell’s “incompetence.”
The investigation added uncertainty to the timetable for the central bank’s leadership transition.
Powell has signaled he will stay on until a successor is confirmed
Powell has made it clear that he does not intend to step down immediately after his term ends, especially amid the ongoing investigation and confirmation delay.
“That’s required by law … and that’s what we’re going to do in this situation,” Powell said, referring to the temporary service.
Trump pushes for rate cuts, supports Warsh
Trump reiterated his demand for lower interest rates and expressed confidence that Warsh would be in line with his economic vision.
Trump previously said he would only appoint a chairman who would support lower rates.
The Federal Reserve’s policy decisions are made by a 12-member committee, including board governors and regional bank presidents, limiting unilateral control by the chairman.
The tension spills over
Trump also addressed Tillis directly, expressing mixed confidence about the senator’s stance.
“He’s on his way out … I think he doesn’t want the legacy of stopping a great person,” Trump said.
Despite this, Trump insisted that the Powell investigation must continue: “Don’t you think we have to find out what happened there? I have to find out.”
