United States President Donald Trump said on Wednesday (14) that he has no plans to fire Jerome Powell despite a Justice Department criminal investigation into the Federal Reserve chair, but that it is ‘too early’ to say what he will ultimately do.
‘I have no plan to do that,’ Trump told Reuters in an interview when asked whether he would seek to remove Powell from his position.
When asked if the investigation gave him reason to do so, Trump added: ‘Right now, we’re in a bit of a holding pattern with him,’ and we’re going to determine what to do. But I can’t get into it. It’s too early. Too soon.’
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Powell’s term as Fed chief ends in May, but he is not required to leave the Washington-based Board of Directors until 2028.
Trump has suggested he is leaning toward nominating former Fed Director Kevin Warsh or National Economic Council Director Kevin Hassett to replace Powell. He also said he had ruled out US Treasury Secretary Scott Bessent for the role, ‘because he wants to stay where he is.’
“Both Kevins are very good,” Trump said. ‘You have other good people too, but I will announce something in the next few weeks.’
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Recently, over cost overruns on a $2.5 billion project to renovate two historic buildings in the Fed’s headquarters complex, he denied wrongdoing and said the unprecedented actions were a pretext to pressure Powell for not meeting Trump’s long-standing demands for lower interest rates.
Trump has put public pressure on Powell, whom he appointed Fed chair during his first term, for not cutting interest rates as quickly or as much as the Republican president prefers. Ahead of November’s midterm congressional elections, voters say cost-of-living issues are key and misjudge Trump’s handling of them.
Trump rejected the criticism, including from lawmakers whose support he will need to confirm his choice to succeed Powell. ‘I don’t care,’ he said. ‘They must be loyal. That’s what I say.’
He also rejected the widely held view among analysts, investors and economic officials around the world that a. ‘I don’t care,’ he repeated.
