President Donald Trump said Wednesday that if Fed Chair Jerome Powell stays on as a Fed governor after his successor is named, that the president will have him removed from office.
“Then I’ll have to fire him,” the president said during an interview on Fox Business. “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. I want to be uncontroversial.”
Trump also said the probe into the renovation of the central bank’s headquarters needs to continue, CNBC reported.
Powell’s term as Fed chair ends on May 15, and Trump has nominated former Fed Governor Kevin Warsh as his successor.
Senator Announces Hearing
Sen. Tim Scott (R-S.C.), Chairman of the Senate Banking, Housing, and Urban Affairs Committee, said Tuesday that the committee will hold a hearing next week.
Scott joined Fox Business’ Mornings with Maria Bartiromo to discuss the path forward for confirming Warsh to replace current Powell when he leaves that post in May. Scott expressed confidence that the nomination process will move forward.
“Next week, we’ll have a hearing with Kevin Warsh being present. We’ll talk through the economy, we’ll talk through price stability and inflation, and we’ll talk about the independence of the Fed. And then the second step, later on we’ll have a vote on Kevin Warsh,” said in the Fox interview.
Though Powell’s time as chair is nearly finished, he has two years remaining on his term as governor, CNBC noted. Though most Fed chairs in the past have left the central bank after being replaced, Powell has demurred under repeated questions on what his plans are.
Powell’s exit as chair has been complicated by an investigation into the Fed headquarters renovation. U.S. attorney for the District of Columbia Jeanine Pirro tried issuing a subpoena to Powell for information regarding the project but was rebuffed by a judge, a decision she said she would appeal.
Threat to Block Nomination
Sen. Thom Tillis, R-N.C., said he will block Warsh’s nomination from leaving the Senate Banking Committee until the probe is finished. Powell said he will stay on as chair until a successor is confirmed, consistent with Fed policy.
Last year, Trump tried to replace Governor Lisa Cook following accusations of mortgage improprieties, but that effort has been unsuccessful so far.
The Cook case has been argued before the U.S. Supreme Court and is awaiting a decision.
