Donald Trump threatens to fire Fed Chair Jerome Powell after May 15, $3–4 billion building probe and Senate delay deepen crisis

The U.S. President Donald Trump has threatened to fire Jerome Powell if he does not leave his role after May 15. Trump said clearly in a Fox Business interview: “Then I’ll have to fire him” if Powell stays beyond his term. This is part of a long fight between Trump and Powell over interest rates and Fed decisions. Trump also called Powell a “disaster” and strongly criticised him publicly.

Trump accused Powell of wasting money on the Federal Reserve headquarters renovation. He claimed a small building project is now costing over $3 billion, as stated by News18. Trump even suggested possible corruption or incompetence in the project. He said he wants to know who the contractor is and hinted they may be making huge profits. The Federal Reserve responded that costs increased due to issues like asbestos, toxic soil, and water problems.

Trump has chosen Kevin Warsh as Powell’s replacement. But Warsh is not yet approved by the US Senate. If no replacement is confirmed by May 15, Powell can stay temporarily as chair. Powell himself confirmed this rule earlier in March.

Senate delay issue

A Senate hearing for Warsh is planned for April 21. However, Senator Thom Tillis has refused to support Warsh for now, as per News18. Tillis wants a criminal investigation against Powell to finish first. This investigation is about the same building renovation issue. The investigation is being led by Jeanine Pirro. Trump said he will NOT stop the investigation just to help Warsh get confirmed. He argued the project cost could go up to $4 billion and needs full investigation.

What Powell said

Powell has clearly said he will NOT resign right now. He wants to stay until the investigation is fully complete and transparent. Powell’s term as Fed Chair ends on May 15, as noted by News18. But his term as a Fed Board member continues until January 2028. He has not confirmed if he will stay on the board after May 15.

Trump’s strong warning

Trump repeated that he has wanted to fire Powell earlier but avoided controversy. Now he says if Powell does not leave, he will be fired. This makes the situation more tense and complicated.

Bigger impact on Fed

If Warsh becomes chair, Trump could have more control over the Federal Reserve. This could affect interest rates and major economic decisions. Currently, Trump has appointed only 3 members on the 7-member Fed board, as noted by Reuters report. One member, Stephen Miran, is already in an expired-term seat. That seat may need to be vacated for Warsh to join.

The situation is now a major power struggle between Trump and Powell. Key issues: firing threat, investigation, Senate delay, and control over the Fed, according to the reports. What happens next depends on the investigation and Senate decision on Warsh.

FAQs

Q1. Why is Donald Trump threatening to fire Jerome Powell?

Donald Trump is unhappy with Jerome Powell over interest rates and a costly Fed building project under investigation.

Q2. Can Jerome Powell stay after his term ends?

Yes, Jerome Powell can stay temporarily if no new chair is confirmed by the Senate.