US President Donald Trump said he would fire Jerome Powell as chairman of the Federal Reserve if he did not leave his post on time, and insisted that the Justice Department's investigation into the central bank chief should continue.
Trump said in an interview with Fox Business: “I’ll have to fire him, okay, if he doesn’t leave on time. I hesitated to fire him. I wanted to fire him, but I hate controversy.” He added in the interview, which aired Wednesday: “I want to avoid controversy. But he will be fired.”
Powell's term as central bank chairman ends in May, but his membership on the Board of Governors does not end until 2028.
Powell had stated that if a successor was not appointed before his term as chair ended in May, he would assume the role of interim chair. The Federal Reserve has previously granted this temporary appointment to a member of its board of directors to lead the institution when the chair position is vacant. It is not entirely clear whether Trump has the authority to remove Powell from his post.
Kevin Warsh's path to the Federal Reserve presidency blocked
Trump ignored Senator Thom Tillis's pledge to block Kevin Warsh's confirmation as Federal Reserve chairman until the Justice Department investigation is complete, and indicated that he would prefer Powell to remain on the board rather than halt the investigation.
Trump said: I know he said what he said, and it may be true, and in that case I will have to accept it, but not as president.
Treasury Secretary Scott Bisent expressed confidence Wednesday that the Senate would confirm Warsh's nomination in time to avoid such a scenario. Despite Tillis's stance, the Senate Banking Committee scheduled a confirmation hearing for April 21.
I am very optimistic that Kevin Warsh will take over as chairman of the Federal Reserve on schedule, and there will be no debate about it then, Bisent said in a White House press briefing.
In response to a question about how to convince Tillis to proceed with his nomination, Bisent noted that the Republican senator had publicly stated that Kevin Warsh was an excellent candidate to head the Federal Reserve, adding: Let's wait for the hearings and see what happens then.
