Trump Threatens Powell's Removal; Fed Chair Refuses, Cites Ongoing DOJ Probe

President Donald Trump issued one of his most direct warnings yet on Wednesday, saying he will fire Federal Reserve Chair Jerome Powell if Powell does not step aside when his term expires next month. “Then I’ll have to fire him,” Trump told Fox Business’ Maria Bartiromo, leaving absolutely no room for interpretation. Powell’s term as Fed chair runs out on May 15, giving him exactly one month left before Trump’s ultimatum kicks in. But Powell, who has repeatedly said the president cannot legally remove him from his job, is not budging even one inch. In a move that caught many by surprise, Powell announced he has no intention of quitting while a criminal investigation by the Department of Justice is still active. “I have no intention of leaving the Board until the investigation is well and truly over with transparency and finality,” Powell said clearly. That statement alone changed the entire equation. The DOJ probe, led by DC US Attorney Jeanine Pirro, accuses Powell of lying to Congress about a $2.5 billion renovation of the Fed’s Washington headquarters. Trump has called the project corrupt and incompetent, claiming a job he says he could have done for $25 million is now ballooning toward $4 billion. The Fed says the cost overruns are due to unforeseen problems including asbestos, toxic soil, and a higher-than-expected water table. The investigation escalated sharply on Tuesday when two prosecutors from Pirro’s office showed up unannounced at the Fed’s headquarters to check on renovation progress. They were turned away at the door. Fed lawyer Robert Hur then sent correspondence telling prosecutors not to return without a Fed lawyer present. Pirro pushed back hard. “Any construction project that has cost overruns of almost 80% over the original construction budget deserves some serious review,” she said in a public statement. “And these people are in charge of monetary policy in the United States?” Trump nominated former Fed Governor Kevin Warsh back in January to replace Powell. The Senate Banking Committee has now scheduled Warsh’s confirmation hearing for April 21. But the road to confirmation is far from clear. North Carolina Republican Senator Thom Tillis, a key vote on the committee, has said he will not confirm Warsh until the Powell probe is fully resolved. Trump said Wednesday he believes Tillis “is an American; he knows what to do,” but also admitted the senator may hold firm. That stubbornness from Tillis is the part of this story nobody fully saw coming when Trump launched the investigation. The irony is stunning. The very criminal probe Trump’s administration launched to pressure Powell out is now the reason Powell feels legally justified staying put. A federal judge recently quashed the DOJ’s subpoenas related to the renovation, though Pirro has said she plans to appeal that ruling. If Warsh is not confirmed by May 15, Fed regulations allow Powell to remain as chair “pro tempore” until a replacement is confirmed. Powell confirmed this himself at a March press briefing, saying plainly, “That’s what the law calls for. That’s what we’ve done on several occasions.” Trump insists he has the authority to fire Powell, but legal experts and Powell himself strongly disagree. Under Section 10 of the Federal Reserve Act, a president can only remove a Fed official “for cause,” a legal standard that remains deeply unclear in this situation. Powell, himself a trained lawyer, has said repeatedly that no such cause exists. Trump also attempted to fire Fed Governor Lisa Cook, claiming mortgage fraud, allegations Cook firmly denies. Cook fought back and the case reached the Supreme Court in January. The justices appeared skeptical that Trump had the authority to remove her, with a decision expected as early as this Friday. “I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial,” Trump told Bartiromo on Wednesday. That rare moment of honesty captures exactly where this standoff stands. Trump wants Powell gone but has not yet pulled the trigger, and Powell has made sure the legal and political cost of doing so will be enormous. With one month left on the clock, both men are dug in. The Federal Reserve’s independence, the future of monetary policy, and the stability of the US economy now hang on what happens next in a fight that was never supposed to get this far. CNN’s Brutal ‘Enemy from Within’ Montage of Trump Sparks Outrage and Deepens Political Divide MAGA Outrage Erupts Over Jimmy Kimmel’s Return Trump Admin Warns GOP: Demanding More Epstein Files Is an ‘Act of War’ Against the White House White House ‘unraveling’ as Trump realizes he doesn’t ‘hold the cards’: DC insiders