"If he doesn't leave, I'll force him out!" Trump pressures Fed Chair

United States – According to Reuters, U.S. President Trump stated on April 15 that if current Federal Reserve Chair Jerome Powell does not voluntarily step down after his successor takes office, he will have no choice but to fire Powell.

In fact, Powell's term as Fed Chair ends on May 15, but he has said he will remain in office as long as the legal proceedings against him continue. The lawsuit was initiated by a prosecutor closely aligned with a Republican president.

Jerome Powell can indeed continue serving as a Federal Reserve Board member (his term extends until early 2028). In an interview aired on Fox Business Channel on Wednesday, Trump said: "Then I’ll have to fire him. […] If he doesn’t resign voluntarily […] I originally wanted to fire him, but I didn’t want to stir up controversy." The president appears unwilling to intervene to halt the investigation into Mr. Powell.

The investigation has drawn widespread criticism, even within his own party, with some elected officials viewing it as an unwarranted attack on the independence of the Federal Reserve. This deadlock has delayed Senate confirmation of Powell’s nominated successor, Kevin Warsh.

A Senate committee is scheduled to hold hearings next Tuesday to hear testimony regarding former Fed governor Kevin Warsh (2006–2011), who has been nominated for the position.

Democratic Senator Elizabeth Warren issued a statement on Tuesday protesting the move, saying, "As long as the president (Trump) continues trying to control the Federal Reserve, there should be no Senate hearings or votes on Kevin Warsh’s nomination."

If Warsh’s nomination is not confirmed, there will be no vacancy in the chairmanship of the Federal Reserve. Powell is expected to continue serving as chairman.

U.S. Treasury Secretary Scott Bessent said on CNBC on Wednesday: "I hope everyone can work together" to ensure Kevin Warsh assumes office "by May 16." "They’ll find a way to resolve it," said Kevin Hassett, Trump’s economic adviser, during an Axios-hosted event held in Washington amid this week’s International Monetary Fund (IMF) and World Bank meetings in the U.S. capital.

Since returning to politics in January 2025, Trump has consistently sought to accelerate Jerome Powell’s departure and remove another Federal Reserve official. He aims to install individuals who share his belief that interest rates should be lowered and that concerns over inflation levels are exaggerated.

Trump has questioned Powell’s competence and integrity, citing suspicious overspending on the renovation of the Federal Reserve’s headquarters building in Washington. Prosecutor Jeanine Pirro took Trump’s claims seriously and launched a legal process that could lead to criminal charges—causing an uproar across business and political circles, with some viewing this as a strategy of intimidation against the Federal Reserve.

Republican Senator Thom Tillis, originally scheduled to hear Warsh’s testimony, warned he would not approve the nomination unless the prosecutor’s office drops the case.

David Wessel, a researcher at the Brookings Institution in Washington, told AFP: "If the investigation into Jay Powell is merely being used to delay Kevin Warsh’s appointment, then President Trump’s rationale becomes difficult to understand."

Wessel added: "If he can get Jeanine Pirro to back down—which everyone believes he can—then Jay Powell will leave when Kevin Warsh is appointed." The expert also noted another "highly likely" scenario: "Kevin Warsh passes the hearing. Trump continues his battle with Jay Powell. The Senate fails to vote on confirming (Warsh’s) appointment, and this situation drags on for weeks or even longer."

Sources: rfi

Original article: toutiao.com/article/1862581556121802/

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