President Donald Trump threatened to fire Federal Reserve Chair Jerome Powell if he remains in his position beyond the expiration of his term on May 15, escalating a confrontation that has paralyzed the central bank's leadership transition.
Then I'll have to fire him
Donald Trump — Fox Business
The threat comes as Powell plans to stay on temporarily until his nominated successor, Kevin Warsh, receives Senate confirmation. Powell's decision to remain stems from an ongoing Justice Department investigation into Federal Reserve headquarters renovations that has complicated the confirmation process.
Federal prosecutors made an unannounced visit Tuesday to the Fed's construction site, seeking access to inspect the $2.5 billion renovation project. Two prosecutors and an investigator from U.S. Attorney Jeanine Pirro's office were turned away by contractors and referred to Fed attorneys, according to sources familiar with the incident.
The investigation centers on cost overruns and Powell's brief testimony about the project before the Senate Banking Committee last June. Trump has accused Powell of mishandling the renovation, claiming it could have been completed for tens of millions rather than billions of dollars.
The BBC frames this as a constitutional crisis over central bank independence, emphasizing the unprecedented nature of threatening to fire a Fed chair. Their coverage highlights the broader implications for institutional norms and market stability, reflecting Britain's own experience with central bank autonomy.