Trump escalates threats to fire US Federal Reserve Chair Powell

President Trump has escalated his threats to fire Federal Reserve Chair Jerome Powell if he does not voluntarily leave his board seat when his term ends on May 15. In an interview with Fox Business, Trump stated he would "have to fire him" if Powell doesn't leave on time. This comes amid delays in the confirmation of Kevin Warsh, Trump's pick to succeed Powell as Fed chair, whose confirmation hearing is scheduled for next Tuesday. Senator Thom Tillis has threatened to block Warsh's confirmation until a federal probe into Powell concludes. Experts suggest Trump's threats are legally questionable, citing his apparent failure to remove Fed Governor Lisa Cook. If Warsh is not confirmed, Powell would remain chair.

President Trump stated he would fire Federal Reserve Chair Jerome Powell if he doesn't step down "in time," although he did not specify a timeline. Trump also indicated he would not drop the Justice Department investigation into Powell. Powell's term as chair ends in May, but his position on the Board of Governors continues until 2028. While Trump allies hoped Powell would resign his board seat, Powell stated he has no intention of resigning until the DOJ investigation into a building renovation project is complete. Powell also said that if a successor is not confirmed by May, he would serve as chair pro tempore.

President Trump has threatened to fire Federal Reserve Chair Jerome Powell if he doesn't leave his post in May when his term expires. This threat stems from Trump's dissatisfaction with Powell's resistance to cutting interest rates, despite Trump's repeated requests. Powell intends to remain in his position until his nominated successor, Kevin Warsh, is confirmed by the Senate. However, Senator Thom Tillis, who sits on the committee overseeing Federal Reserve nominations, is blocking Warsh's confirmation unless a criminal investigation into Powell is dropped. Powell has stated he will stay on temporarily if Warsh is not confirmed, as permitted by law.

Former US Federal Reserve chair Janet Yellen criticized Donald Trump's calls for lower interest rates, likening them to practices in a "banana republic." Yellen made the comments at an HSBC investor summit in Hong Kong, arguing that political influence over central banks could lead to uncontrolled inflation. Trump has repeatedly urged the Federal Reserve to cut rates to reduce government borrowing costs. Yellen also questioned the credibility of Trump's pick for Fed chair, Kevin Warsh, whose views on AI and interest rates differ from mainstream economists. Central bank independence is a key topic as finance ministers and central bankers gather in Washington for the International Monetary Fund's spring meetings, with the Bank of England governor also emphasizing its importance.