Trump Threatens to Remove Fed Chair Powell if He Stays Past May

President Donald Trump has vowed to dismiss Federal Reserve Chair Jerome Powell if he does not resign by the end of his current term in May. The tension between the pair has escalated over Powell’s hesitation to lower interest rates, despite Trump’s frequent demands for such action. Powell’s tenure concludes on 15 May, yet he intends to remain in office until a replacement, Kevin Warsh, receives Senate approval.

“I will have to fire him,” Trump stated during a Fox Business interview, addressing Powell’s decision to stay beyond his term. “I have delayed firing him. I wanted to, but I prefer to avoid controversy.”

Senator Thom Tillis, a key Republican on the committee handling Fed chair nominations, has expressed opposition to Warsh’s confirmation. Tillis warned that Trump would not proceed with the appointment unless a criminal inquiry into Powell—connected to the renovation of the central bank’s building—is terminated. Powell defended his position, noting that the law permits him to hold office until his successor is officially appointed.

Trump previously criticized Powell for his handling of the Federal Reserve building project, accusing him of overspending and suggesting the work could have been completed for significantly less. The president has also labeled Powell a “knucklehead” and claimed he was “performing poorly” after ignoring repeated calls for rate cuts. This dispute gained traction in 2025 when Trump hinted at firing Powell, prompting stock markets and the US dollar to decline.

“Don’t you think we need to uncover what occurred there?” Trump remarked, defending the probe into Powell’s actions. “I must know the truth.”

Despite Trump’s public denial of intent to sack Powell, he emphasized that the decision would only happen if Powell’s actions were tied to fraud. Firing Powell would mark the first time a Fed chair has been removed from office, breaking a long-standing precedent. Trump initially appointed Powell in 2017, praising his “consistent leadership” and “sound judgment.” Powell was later reappointed by President Joe Biden in 2021.