Former President Donald Trump has escalated his threats against current US Federal Reserve Chair Jerome Powell, stating he would fire Powell from his position on the central bank’s board of governors if he does not voluntarily step down by May 15, the date his term concludes.
In a recent interview with Fox Business, Trump reiterated his intent, declaring that if Powell fails to leave, he would “have to fire him.” Trump expressed a long-held desire to dismiss Powell, noting, “If he’s not leaving on time – I’ve held back firing him, I’ve wanted to fire him, but I hate to be controversial, you know. I want to be uncontroversial, but he will be fired.”
Legal Challenges and Precedent
Skanda Amarnath, executive director of Employ America, an economic policy think tank, told Al Jazeera that President Trump’s threats are “hardly surprising, but are simply not consistent with what the law provides.” Amarnath highlighted that Trump is already facing legal challenges in his attempt to remove Fed Governor Lisa Cook and would likely encounter similar difficulties if he tried to fire Chair Powell.
Successor Delays and Investigations
Trump’s comments come amidst significant delays in the confirmation process for Kevin Warsh, his preferred candidate to succeed Powell as Fed chair. Warsh’s confirmation hearing before the Senate Banking Committee is scheduled for next Tuesday, but his path to confirmation remains uncertain. Last month, North Carolina Senator Thom Tillis indicated he would block Warsh’s confirmation until a federal criminal probe into Powell concludes. Should a nominee fail to be confirmed, Powell would continue to serve as chair.
Trump also referenced an ongoing investigation by US Attorney for the District of Columbia Jeanine Pirro into a Fed building renovation project, which the administration has criticized for cost overruns. This aligns with Trump’s long-standing push for lower interest rates and greater control over the central bank’s board, advocating for more members who align with his economic views.
Undermining Independence Claims
Powell has consistently pushed back against the investigation, characterizing it as a pretext to undermine the central bank’s independence in monetary policy assessment. Notably, in March, a federal prosecutor admitted that the investigation into the renovations had yielded no evidence of criminal activity.
With greater control over the seven-member board, a confirmed Kevin Warsh could have a freer hand in shaping monetary policy and implementing other changes at the central bank favored by the administration. Currently, Trump has appointed only three of the board’s members. One of these appointees, Fed Governor Stephen Miran, occupies a seat whose term has already expired and would need to be vacated for Warsh to join.
The White House has not yet responded to requests for additional comment on the matter.
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