Trump’s Threat to Fire Powell Hinges on a Renovation Probe, Not Rates

Federal Reserve Chair Jerome Powell could be fired if he stays in office past May 15, not because of interest rate policy, but over a criminal investigation into the central bank’s building renovation. Powell’s term expires on that date, but he intends to remain in the role until Kevin Warsh, Trump’s nominee to succeed him, is confirmed by the Senate. That confirmation is now in jeopardy. Thom Tillis, a Republican senator on the committee overseeing Fed nominations, has refused to advance Warsh’s appointment unless the probe into Powell is dropped. The investigation centers on renovation costs at the Federal Reserve building, which Trump claims ran into billions of dollars—far exceeding an estimated tens of millions it should have cost. Trump has refused to terminate the probe, telling Fox Business, “Don’t you think we have to find out what happened there? I have to find out.” He has threatened to fire Powell if he remains in office after his term ends, saying, “Then I’ll have to fire him.” The law allows Powell to stay on temporarily, as has been done before, but Trump insists he will not hold back on removal. The conflict is not about interest rates, as publicly framed, but about accountability for spending and the political conditions attached to a key central bank appointment.