US President Donald Trump has threatened to fire the chairman of the Federal Reserve, Jerome Powell, if he does not retire at the end of his term in May, writes the BBC.
The two were embroiled in a spat after Powell refused to cut the central bank's interest rate despite repeated calls from Trump.
Powell's term expires on May 15, but he plans to remain in office until his successor, Kevin Warsh, is confirmed by the Senate.
“In that case I'm going to have to fire him,” Trump told Fox Business when asked about Powell's plans to stay on.
“I refrained from firing him. I wanted to fire him, but I hate to be a controversial figure,” Trump said.
Thom Tillis, an influential Republican senator on the committee that oversees nominations for the chairman of the Federal Reserve, has threatened to block Warsh's confirmation. If Warsh is not confirmed before Powell's term expires, he plans to remain in the position on an interim basis.
“That's what the law says. That's what we've done on several occasions,” Powell said.
Tillis warned Trump that he would not allow Warsh to be appointed unless the criminal investigation into Powell, related to the renovation of the Federal Reserve Building, was dropped.
Senate Republican Majority Leader John Thune said Wednesday that the Justice Department should end its investigation into Powell.
“I think it's in everyone's best interest to close the investigation,” Thune said.
Another Republican senator on the banking committee, Mike Rounds, told reporters at the Capitol on Wednesday that the investigation “doesn't serve our purpose.”
Trump said he hoped Tillis would drop his opposition to Warsh's nomination, adding that he was not ready to drop the Powell investigation.
He told Fox Business: “Don't you think we need to find out what happened there? I need to find out.”
Asked Wednesday about Trump's comments, Treasury Secretary Scott Bessent said he was “very optimistic” that Warsh would be confirmed before May 15.
Speaking at a White House news conference, he said: “I'm sure Senator Tillis wants to do what's best for the Federal Reserve, for the American people.”
“He's said publicly that Kevin Warsh is a great candidate for president, so let's get to the hearings and see where we stand.”
Trump accused Powell of mismanaging the overhaul of the Federal Reserve, spending billions of dollars on a project he suggested could have been done with tens of millions.
He previously labeled Powell an “idiot” and claimed he was “doing a bad job” after his repeated calls to cut interest rates were ignored.
Stock markets and the US dollar fell after 2025 appeared. Trump broached the idea of firing Powell.
The US president quickly denied that he was going to fire him, adding: “It's very unlikely, unless he has to go because of fraud.” If Trump were to fire Powell, it would be the first time a Federal Reserve chairman has been fired.
Trump appointed Powell to head the Federal Reserve during his first term in 2017, praising his “steady leadership, sound judgment and policy expertise.”
