President Trump has set a hard deadline for Federal Reserve Chair Jerome Powell, stating that Powell must resign by May 15 or face immediate dismissal. The president made the announcement during an interview with reporters on Wednesday.
“I’ve held back firing him,” Trump said. “I’ve wanted to fire him, but I hate to be controversial, you know? Well then, I’ll have to fire him.”
Trump has pressed Powell for months to lower interest rates, calling the Fed chairman ineffective and claiming the Federal Reserve is out of step with the American economy. Every time, Powell has resisted.
The deadline coincides with Powell’s end of term as Fed chair on May 15. Trump’s nominee to replace him, Kevin Warsh, has a confirmation hearing scheduled for April 21. However, a federal judge recently ruled that an ongoing DOJ investigation into the Federal Reserve’s $2.5 billion Washington headquarters renovation is politically motivated and lacks evidence of criminal activity.
The judge found that “the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign.” Despite this ruling, prosecutors have continued their efforts at the Fed construction site. U.S. Attorney Jeanine Pirro has vowed to appeal the court’s decision.
Powell has vowed to stay on the board until the investigation concludes with “transparency and finality.” Trump, meanwhile, has refused to halt the probe, stating, “Don’t you think we have to find out what happened there?”
A key obstacle is Senator Thom Tillis of North Carolina, a Republican on the Senate Banking Committee. Tillis has indicated he will not confirm Warsh as the new Fed chair until the DOJ investigation against Powell is resolved. This creates a stalemate: Trump’s pressure to force Powell out is also blocking his replacement.
Trump insists that Tillis will eventually agree to let Powell leave, warning that if the senator does not, he will fire Powell upon his term ending and address the confirmation issue later.
The situation remains tense as the Supreme Court separately reviews Trump’s attempt to remove Fed board member Lisa Cook. With May 15 approaching, experts warn that something must give before the deadline passes.
