Trump Says Powell Must Quit Fed Board After Chair Term or Be Fired

Trump Revives Threat to Remove Powell

‘If He Doesn’t Step Down on Time, He’ll Have to Be Fired’

President Donald Trump again raised the possibility of removing Federal Reserve Chair Jerome Powell.

In an interview with a foreign media outlet on Aug. 15, Trump said he would have no choice but to fire Powell if he remains on the Fed’s Board of Governors after a successor is appointed. “If he doesn’t step down on time, he’ll have to be fired,” Trump said, adding that he had held off because he wanted to avoid unnecessary controversy.

Powell’s term as chair ends on May 15. Trump has nominated former Fed governor Kevin Warsh as his successor. Powell, however, would still have about two years remaining in his term as a Fed governor after his chairmanship expires.

The dispute has grown more complicated as it overlaps with a US federal criminal investigation tied to the renovation of the Fed’s headquarters.

A Washington, D.C., federal prosecutor’s request for related materials was previously rejected by a court, and prosecutors have said they plan to appeal. Republican Senator Thom Tillis has said he will block Warsh’s confirmation process before the Senate Banking Committee until the investigation is completed.

Powell has also indicated he intends to remain in the chair until the investigation ends and a successor is confirmed. The Senate Banking Committee is scheduled to hold a hearing on Warsh at 10 a.m. on Aug. 21.

Lee Jung-woo, Hankyung.com reporter, krse9059@hankyung.com