Trump Threatens to Fire Fed Chair Powell Over “Incompetence” in Interview
President Donald Trump said he could fire Federal Reserve Chair Jerome Powell over “incompetence,” escalating a clash that now intersects with an active federal investigation and looming leadership change.
The threat, made during a Fox Business interview, raises immediate questions about whether a president can remove a Fed chair and what would happen if Trump tries.
Trump told Fox Business he has “wanted to fire him,” while linking his criticism to a Justice Department probe into the Federal Reserve’s multibillion-dollar renovation project, according to Fox Business reporting.
The comments come as Powell’s term as chair is set to expire May 15, though Powell has said he intends to remain on the Fed’s board while the investigation continues, according to Reuters.
That creates a new complication: Trump is pushing to install Kevin Warsh as successor, but Senate opposition tied to the same probe is delaying confirmation.
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“I’ve wanted to fire him,” Trump said in the interview.
The broader stakes center on the Federal Reserve’s independence, which has historically limited presidential control over interest rate policy and leadership decisions.
Trump has repeatedly criticized Powell for not cutting rates, while backing an investigation that critics say lacks evidence and could be seen as political pressure, according to AP News.
Legal uncertainty remains a major factor, with experts noting a president typically needs “cause” to remove a Fed official, and no charges have been filed against Powell.
The next phase is likely to unfold in courts or the Senate, where Warsh’s nomination and the limits of presidential power over the Fed could be tested.
For now, the standoff leaves the central bank facing both leadership uncertainty and intensifying political pressure.
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