Trump says he will fire Powell if he stays past May as Senate stalls successor’s confirmation
Powell publicly linked the investigation to political pressure after receiving the first subpoena in January
US President Donald Trump on Wednesday threatened to fire Federal Reserve Chair Jerome Powell if he does not leave when his term expires on May 15. Well then, I’ll have to fire him, Trump said in an interview on Fox Business. I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial. I want to be uncontroversial, but he will be fired.
The threat comes as the confirmation of Kevin Warsh, Trump’s designated successor named in January, remains stalled in the Senate. The Banking Committee scheduled a confirmation hearing for April 21, but Republican Senator Thom Tillis of North Carolina has said he will block the process while the criminal investigation against Powell continues. Trump suggested Tillis might reverse course: He doesn’t want the legacy of having an incompetent guy stay there for longer than is necessary.
If Warsh is not confirmed before May 15, federal law allows Powell to remain as chair pro tempore until his successor is confirmed. Powell signaled as much last month: I will serve until my successor achieves nomination. If my successor is not confirmed at the end of my term as chair, I would serve as chair pro tempore until he is confirmed. That is what the law requires.
Meanwhile, pressure on the Fed intensified with an unannounced visit by prosecutors from the office of US Attorney for Washington Jeanine Pirro to the central bank’s headquarters renovation site. Prosecutors Carlton Davis and Steven Vandervelden, accompanied by a criminal investigations agent, attempted to access the site after speaking with construction workers but were told they needed prior authorization, The Wall Street Journal reported.
The criminal investigation, opened in January, focuses on cost overruns at two historic Fed office buildings, where the budget grew from $2.5 billion to $3.1 billion due to construction difficulties, underground leaks near the Potomac River and expansions to connect the two buildings. A project with cost overruns approaching 80% deserves serious review, Pirro said in a statement.
The Fed’s outside counsel, Robert Hur, formally protested the visit in a letter to prosecutors, noting that a federal judge last month quashed two subpoenas against the central bank, finding that the investigation appeared designed to harass and pressure Powell into meeting Trump’s desire for lower interest rates or leaving office.
Powell publicly linked the investigation to political pressure after receiving the first subpoena in January. The threat of criminal charges is because the Federal Reserve sets interest rates based on our best assessment of what will benefit the public interest, rather than following the president’s preferences, he said in a video statement.
Trump’s strategy has generated a wave of support for Powell. Former living Fed chairs have backed him publicly, as have Democratic lawmakers and several Republican senators, AP reported.
