BY MIRABEL ODETA
U.S. President Donald Trump said on Wednesday he has no immediate plans to fire Federal Reserve Chair Jerome Powell, even as the Justice Department conducts a criminal investigation involving the central bank chief, though he emphasized it was too early to rule out any future action.
Trump said he was currently in a “holding pattern” regarding Powell’s position and declined to say whether the investigation could eventually provide grounds for removal. He indicated that no final decision had been made and stressed that the situation was still developing.
Powell’s current term as chair of the Federal Reserve ends in May, though his position on the Fed’s Washington-based Board of Governors runs through 2028, meaning he is not required to step down from the central bank after his leadership term expires.
Trump suggested he is already considering potential successors should he decide to replace Powell. He said former Federal Reserve Governor Kevin Warsh and National Economic Council Director Kevin Hassett were among the leading candidates under consideration, describing both men as highly capable.
Trump said he had ruled out Treasury Secretary Scott Bessent, noting that Bessent preferred to remain in his current role. He added that an announcement on the matter could come within the next few weeks.
The criminal investigation centers on cost overruns tied to a $2.5 billion renovation project involving two historic buildings at the Federal Reserve’s headquarters.
Powell disclosed the probe publicly and has denied any wrongdoing. He has characterized the investigation as an unprecedented move and suggested it was being used to pressure him over his refusal to meet Trump’s long-standing demands for steep interest rate cuts.
The investigation has drawn sharp criticism from some Republican senators, foreign economic officials, investors, and former U.S. officials from both major political parties.
Critics argue the move risks politicizing monetary policy and undermining the independence of the Federal Reserve, which is seen globally as essential to maintaining economic stability. The Trump administration has defended the probe, saying it has an obligation to investigate potential misconduct regardless of position.
Trump has repeatedly criticized Powell for not lowering benchmark interest rates as quickly or as aggressively as he believes is necessary. Cost-of-living concerns remain a major issue for voters ahead of November’s midterm elections, and surveys show many Americans give Trump low marks for his handling of inflation and everyday expenses.
Trump dismissed concerns from lawmakers and analysts who warn that weakening central bank independence could damage confidence in the U.S. dollar and fuel inflation. He also brushed off objections from members of Congress whose support would be required to confirm any nominee to replace Powell, saying loyalty should come first.
During his time back in office, Trump has frequently tested the boundaries of presidential authority. He has already attempted to remove another Federal Reserve official, Governor Lisa Cook, a move that is now being challenged in court and is scheduled to be argued before the Supreme Court next week.
Trump defended his involvement in monetary policy, arguing that presidents should have a voice in Federal Reserve decisions. He also renewed his personal criticism of Powell, asserting that his own business background gives him greater insight into economic matters and again using a derogatory nickname to descr
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