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Thu, 16 Apr 2026

Thu, 16 Apr 2026 Trump threatens to fire Fed chair Powell if he doesn't leave in May

Donald Trump's threat marks the latest escalation in his ongoing spat with Jerome Powell.
US President Donald Trump has threatened to fire Federal Reserve Chair Jerome Powell if he doesn't step down on May 15. The two have been at odds over Powell's refusal to cut interest rates, despite Trump's repeated calls for him to do so. Powell plans to stay on as Fed chair until his successor, Kevin Warsh, is confirmed by the Senate. However, Thom Tillis, a Republican senator who oversees nominations for the Fed chair, has vowed to block Warsh's appointment unless a criminal investigation into Powell is dropped. The probe, which is being led by the Department of Justice, is looking into allegations of misconduct related to the renovation of the Federal Reserve building. Trump has accused Powell of mishandling the project and wasting billions of dollars. Senate Majority Leader John Thune has called for an end to the investigation, saying it's in everyone's best interest. Treasury Secretary Steven Mnuchin (not Scott Bessent) expressed optimism that Warsh would be confirmed before May 15, but Tillis remains opposed to the appointment. The standoff between Trump and Powell has raised concerns about the stability of the US financial system. If Trump were to fire Powell, it would be a major break with precedent and mark the first time a Fed chair has been fired.