Gotrade News - President Trump escalated his long-running confrontation with the Federal Reserve on Tuesday, April 15, threatening to fire Chair Jerome Powell if he refuses to step down. The warning came during a Fox Business interview where Trump told host Maria Bartiromo, "Then I'll have to fire him."
Powell's term as Fed Chair expires on May 15, 2026, though his seat on the Board of Governors runs through January 31, 2028. Trump indicated he expects Powell to leave entirely when the chair term ends, setting up a potential constitutional showdown over central bank independence.
Key Takeaways:
- Trump publicly threatened to fire Powell during a Fox Business interview, saying "I've wanted to fire him, but I hate to be controversial."
- Kevin Warsh, Trump's Fed Chair nominee with disclosed assets of $131-209 million, faces Senate testimony on April 21.
- Senator Thom Tillis (R-NC) has pledged to stall all Fed nominations while a DOJ probe into the Fed headquarters renovation continues.
Political Battle Over Fed Independence
The threat raises significant legal questions about whether a sitting president can remove a Federal Reserve chair before the board term expires. Powell has signaled he will not resign voluntarily while the headquarters renovation investigation remains unresolved.
Trump's nominee to replace Powell, Kevin Warsh, is scheduled to testify before the Senate Banking Committee on April 21. Financial disclosures reveal Warsh holds assets valued between $131 million and $209 million, according to filings reviewed by Benzinga.
Trump has publicly expressed confidence that Warsh could drive US economic growth exceeding 15%. That claim far exceeds any mainstream economic forecast and has drawn skepticism from analysts across Wall Street.
DOJ Investigation Complicates the Transition
The Department of Justice threatened the Federal Reserve with criminal indictment in January over testimony related to the headquarters renovation costs. Trump referenced the probe directly, asking whether oversight should stop for "a building that I would have done for $25 million that's going to cost maybe $4 billion."
The Fed contested two DOJ subpoenas in February and filed to have them dismissed in sealed court proceedings. The unresolved investigation creates a procedural obstacle for any clean leadership transition at the central bank.
Bipartisan opposition is building in the Senate around the nominations. Senator Elizabeth Warren called Warsh a "Trump sock puppet," while Republican Senator Tillis pledged to block all Fed nominees until the DOJ probe concludes.
The confrontation between the White House and the Fed comes at a sensitive moment for monetary policy. Markets have been pricing in rate cut expectations for mid-2026, and uncertainty over Fed leadership could inject volatility into interest rate projections.
Investors tracking SPY (S&P 500 ETF) should note that presidential interference with the Fed historically triggers short-term equity selloffs. The S&P 500 declined in after-hours trading following Trump's comments on Tuesday.
The outcome of the April 21 Senate hearing will likely determine whether Warsh faces a confirmation path or prolonged political gridlock. A failed nomination would leave the Fed chair seat vacant after May 15, creating unprecedented uncertainty for US monetary policy.
Sources:
- Benzinga, [Trump Reiterates Threat to Fire Powell](https://www.benzinga.com/news/politics/26/04/51829744/trump-reiterates-threat-to-fire-powell-if-he-doesnt-step-down-once-terms-ends-vows-to-continue-fed-probe-i-hate-to-be-controversial), 2026.
