President Donald Trump on Tuesday insisted he has no immediate plan to fire Jerome Powell, even as the Justice Department probes a renovation project at the US central bank.
“I don’t have any plan to do that,” Trump told reporters, seeking to play down speculation that the investigation could be used to remove the Federal Reserve chair. However, he stopped short of fully ruling it out, saying it was “too early” to determine whether the probe might eventually provide grounds for Powell’s ouster.
“Right now, we’re (in) a little bit of a holding pattern with him, and we’re going to determine what to do. But I can’t get into it,” Trump said.
Under federal law, governors of the Federal Reserve can only be dismissed “for cause,” such as misconduct, and not because of disagreements over monetary policy — a safeguard designed to protect the institution’s independence.
Trump also brushed aside criticism from some Republican lawmakers who have questioned the Justice Department’s actions, warning that the probe could be seen as an attempt to influence interest-rate decisions. Asked about those concerns, Trump replied bluntly: “I don’t care. There’s nothing to say. They should be loyal. That’s what I say.”
Despite the ongoing investigation, the president said he still plans to move ahead with naming Powell’s successor within “the next few weeks.” His comments came even as Senator Thom Tillis, a retiring Republican member of the Senate Banking Committee, has threatened to block Federal Reserve nominations until the probe is resolved.
Trump praised two previously floated candidates for the top Fed job — White House economic adviser Kevin Hassett and former Fed governor Kevin Warsh. “The two Kevins are very good,” he said, adding that other strong candidates were also under consideration.
Powell revealed on Sunday that the Justice Department had served the Fed with grand jury subpoenas related to the renovation project and his past testimony to Congress.
The probe represents a sharp escalation in the Trump administration’s long-running criticism of the Fed and has intensified concerns about political pressure on monetary policy. Powell, whose term as chair runs until May, said the investigation was a pretext for a broader campaign aimed at influencing interest rates.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said in a statement.
