US President Donald Trump has said he may fire Federal Reserve Chair Jerome Powell if Powell does not step down when his term ends in May, escalating a long-running dispute over interest rate policy and the leadership of the US central bank.
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Powell’s current term is due to expire on 15 May. However, he has indicated he intends to remain in the role temporarily until the Senate confirms his nominated successor, former Federal Reserve governor Kevin Warsh.
Speaking in an interview with Fox Business, Trump said he would consider removing Powell if he stayed beyond the end of his term.
“Then I’ll have to fire him,” Trump said when asked about Powell’s plan to remain in office during the transition period.
The president added that he had previously resisted taking such action despite frustrations with Powell’s leadership.
“I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial,” Trump said.
Dispute over successor confirmation
Powell’s potential extended stay comes amid uncertainty over the Senate confirmation of Warsh, Trump’s nominee to lead the Federal Reserve.
Republican Senator Thom Tillis, a key member of the Senate committee responsible for overseeing nominations for the position, has threatened to block Warsh’s confirmation under certain conditions.
Tillis has warned the White House that he will oppose the appointment unless a criminal investigation into Powell connected to renovations at the Federal Reserve headquarters is dropped.
If Warsh is not confirmed before Powell’s term expires, Powell has said he intends to remain temporarily in the role to ensure continuity.
“That’s what the law calls for. That’s what we’ve done on several occasions,” Powell has previously said about remaining until a successor is confirmed.
Trump, however, said he was unwilling to halt the investigation linked to the renovation project.
“Don’t you think we have to find out what happened there? I have to find out,” he told Fox Business.
Despite the dispute, Trump expressed hope that Tillis would eventually support Warsh’s nomination.
“He is an American… he knows what to do,” Trump said of the senator.
Treasury expresses confidence
US Treasury Secretary Scott Bessent said he remained confident that the Senate would confirm Warsh before Powell’s term ends.
Speaking at a White House press briefing on Wednesday, Bessent said he believed lawmakers would ultimately move forward with the nomination.
“I am very optimistic that Kevin Warsh will be confirmed before May 15,” he said.
Bessent also noted that Senator Tillis had previously expressed support for the nominee.
“He has publicly said Kevin Warsh is a great candidate for the chair, so let’s get to the hearings and see where we are,” Bessent said.
Long-running tensions over interest rates
The latest dispute comes after years of tension between Trump and Powell, particularly over interest rate policy.
Trump has repeatedly criticised Powell for not lowering interest rates more aggressively, arguing that cuts would help boost economic growth.
He has also accused the Federal Reserve chair of mismanaging the renovation of the central bank’s headquarters, claiming billions of dollars had been spent on a project he suggested could have been completed far more cheaply.
In the past, Trump has publicly criticised Powell’s performance, describing him as a “knucklehead” and saying he was “doing a lousy job”.
Financial markets reacted nervously in 2025 after reports that Trump had previously considered dismissing Powell. At the time, US stocks and the dollar weakened following the reports.
Trump later said firing Powell was unlikely unless allegations of fraud were involved.
Removing a Federal Reserve chair would represent a significant break with historical practice. No US president has previously dismissed a Fed chair while in office.
Trump initially appointed Powell to lead the Federal Reserve during his first term in 2017, praising his “steady leadership, sound judgement, and policy expertise”. Powell was later reappointed to a second term by President Joe Biden in 2021.
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Adapted by ASEAN Now. Source 16 April 2026
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