President Trump threatens to fire Fed. Reserve Chair Jerome Powell amid probe into renovation of bank’s headquarters

Tensions between President Trump and Fed. Reserve Chair Jerome Powell are intensifying ahead of a key leadership deadline at the Federal Reserve, with the president warning he could remove Powell if he does not step aside when his term as chair ends May 15.

Speaking to Maria Bartiromo on Fox Business, Trump said, “Then I’ll have to fire him,” adding, “If he’s not leaving on time — I’ve held back firing him. I’ve wanted to fire him. But I hate to be controversial. I want to be uncontroversial.”

While Powell’s chairmanship expires in mid-May, his role as a Fed governor runs through 2028. He has indicated he may remain on the board—and potentially serve temporarily as acting chair—if a successor is not confirmed in time. “That’s what the law calls for. That’s what we’ve done on several occasions,” Powell said, while also noting, “I have no intention of leaving the board until the investigation is well and truly over with transparency and finality.”

Trump has nominated former Fed official Kevin Warsh to take over, but the confirmation process has stalled. Senator Thom Tillis has pledged to block progress until a Justice Department investigation into the Fed’s costly headquarters renovation is resolved.  The renovation—now costing billions more than initially planned—has become a central flashpoint. Trump has repeatedly demanded scrutiny, saying, “What they’ve done to that, so it is probably corrupt, but what it really is is incompetent, and we have to show the incompetence of that.” He also questioned the scale of spending, asking, “Don’t you think we have to find out what happened there?” Federal officials have attributed the overruns to unexpected issues like asbestos, soil contamination, and water table complications.

The investigation itself has faced setbacks. A judge rejected an attempt by U.S. Attorney Jeanine Pirro to subpoena Powell, citing a lack of evidence. Some lawmakers from both parties have also expressed skepticism about any alleged wrongdoing.

Meanwhile, legal experts note that removing a Fed chair is not straightforward. Under current law, a president can only dismiss a Federal Reserve official “for cause,” typically meaning serious misconduct—something Powell has not been found to have committed. Any attempt to oust him could trigger a prolonged legal fight. The uncertainty is further complicated by Trump’s ongoing push for faster interest rate cuts, a stance that has clashed with Powell’s more cautious approach. While Trump remains confident Warsh will ultimately take over, the combination of legal hurdles, political resistance, and the ongoing probe suggests the transition may be anything but smooth.

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