TLDR
- Trump confirmed he has no current plans to fire Fed Chair Jerome Powell despite an active DOJ investigation.
- The investigation focuses on $2.5 billion in cost overruns at the Fed’s headquarters renovation project.
- Trump stated it’s “too early” to say what action he might take regarding Powell’s future.
- Trump accused Powell of stifling economic growth by raising interest rates during market rallies.
- Trump mentioned Kevin Warsh and Kevin Hassett as potential replacements, ruling out Scott Bessent.
President Donald Trump confirmed on Wednesday that he has no immediate plans to fire Federal Reserve Chair Jerome Powell, despite an ongoing Justice Department investigation. Speaking to Reuters, Trump said it was “too early” to decide what actions he might take in the future. Powell, who was appointed by Trump, has denied any wrongdoing related to the investigation.
Trump Confirms Jerome Powell Will Stay for Now
Trump told Reuters, “I don’t have any plan to do that,” when asked if he would remove Powell from his post. The Justice Department is investigating cost overruns in a $2.5 billion renovation project at the Fed’s headquarters. Powell disclosed the probe on Sunday and stated he had done nothing wrong.
Trump added, “We’re in a little bit of a holding pattern with him,” and said he would decide what to do later. Despite ongoing political pressure, Powell remains the Fed chair until May, though he can remain on the Board of Governors until 2028. Trump has publicly criticized Powell for not reducing interest rates enough to support market growth.
Trump also mentioned two possible replacements: Kevin Warsh and Kevin Hassett, both with experience in economic policy. He ruled out Treasury Secretary Scott Bessent, saying, “He wants to stay where he is.” Trump said an official announcement could come in the next few weeks.
Public Criticism of Powell’s Interest Rate Approach
In recent comments, Blockonomi reported how President Trump called Powell “a real stiff” and blamed him for hindering market rallies by raising interest rates. Trump said, “When the market goes up, the Fed should lower interest rates,” emphasizing his dissatisfaction with current Fed policy. He argued that higher rates contradict positive economic signals.
Trump claimed Powell “kills every rally” and prevents the economy from growing as much as it could. He continued to press for “old-fashioned” economic policies that favor rate cuts during strong growth. Trump stated that such policies “make a country great” and would unlock more economic potential.
Trump’s criticism follows months of tension between the White House and the Federal Reserve. Lawmakers and international observers have expressed concern about political interference. Trump dismissed the criticism, saying, “I don’t care. They should be loyal.”
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Source: https://blockonomi.com/trump-confirms-jerome-powell-will-stay-in-position-amid-doj-probe/