Breaking: Trump Maintains He Won’t fire Powell Amid DOJ Probe Into Fed Renovation
Washington — President Donald Trump said on Wednesday he has no plan to remove Federal Reserve Chair Jerome Powell, even as the Department of Justice opens a criminal inquiry into the Fed’s over-budget headquarters project. The President also acknowledged an earlier, reportedly jokey offer to JPMorgan Chase chief Jamie Dimon for the top fed job.
Asked by Reuters if he would attempt to fire Powell, Trump replied that there is currently no plan to do so.“Right now, we’re in a holding pattern with him, and we’re going to determine what to do. But I can’t get into it. It’s too soon. Too early,” he said.
In a separate note, White House aides emphasized that there should be no premature conclusions about Powell’s replacement until an official process unfolds. A spokesperson told The Post that speculation is not productive until an proclamation is made.
Powell, whom Trump has criticized for not cutting rates quickly enough, is under a Justice Department probe tied to the Fed’s new headquarters renovation. powell’s term as chair ends in May, though he could remain on the Fed’s board through 2028. he has not publicly said whether he intends to stay on the board beyond his current term.
trump has signaled he is weighing potential replacements, mentioning former Fed Governor Kevin warsh and national Economic Council Director Kevin Hassett as possibilities. He also noted that Treasury Secretary Scott Bessent is unlikely to be tapped, saying he would prefer to keep Bessent where he is. Several other candidates, including BlackRock’s Rick Rieder and Fed Governor Christopher Waller, have been reported as having been considered.
Dimon’s name circulated in discussions months earlier, but reports indicate he viewed Trump’s offer as a joke. Dimon has publicly cautioned against actions that could undermine the Fed’s independence.
Powell, who has rarely commented on trump’s public criticisms, condemned the examination as politically charged. In a recent statement, he stressed that no one is above the law, and argued that the probe should be understood in the broader political context surrounding the central bank’s decisions on interest rates.
Foreign central bankers, former U.S. officials, and lawmakers across the spectrum have warned against elevating a Fed leader who might threaten the bank’s independence. Senate Republicans, including Senator Thom Tillis, have said they could block any of Trump’s nominees if the investigation proceeds.
In a broader economy context, the Fed has already cut rates three times in the previous year, reducing the target range to 3.5%–3.75% as part of ongoing efforts to support affordability and growth ahead of midterm elections.
Key Facts at a Glance
| Fact | Detail |
|---|---|
| Subject | Federal Reserve Chair Jerome Powell |
| Current Status | Under DOJ investigation related to Fed headquarters renovation |
| Trump’s Position | No current plan to fire Powell; considering potential replacements |
| Possible Replacements | |
| Dimon Offer | Reportedly offered the Fed job months earlier; presented as a joke by Dimon |
| Powell’s End of Term | Chair term ends in may; possible continued service on the Fed Board through 2028 |
| Fed rate Action | Three quarter-point cuts last year; target range 3.5%–3.75% |
| Senate Outlook | Some lawmakers threaten to block nominees tied to the probe |
Context and Evergreen Insights
The independence of the Federal Reserve remains a central topic in political battles over the pace of monetary policy. Presidential influence on appointments can affect how the Fed balances its mandate to foster price stability with economic growth. While a president can nominate successors, the Senate plays a decisive role in confirmation, and sustained inquiries into a candidate’s independence or qualifications can complicate the process.
Past precedent shows that a central bank’s credibility hinges on perceived independence from political cycles. Rapid or politically driven shifts in leadership can unsettle markets and undermine confidence in the central bank’s ability to set policy based on macroeconomic fundamentals.
For readers, the key takeaway is that the Fed’s leadership transition—while significant—will largely depend on ongoing investigations, congressional responses, and the administration’s choice of nominees aligned with market expectations and institutional independence.
What’s next
Observers will watch for formal statements from the White House and the Federal Reserve, any updates on Powell’s status, and a clear timeline for potential nominations and Senate confirmation votes. Markets may respond if there are notable shifts in policy expectations tied to the leadership question.
Reader Questions
What do you think is the best path to maintain Fed independence while ensuring accountability? Do you believe the DOJ investigation will influence Powell’s long-term role or the selection of his successor?
Join the discussion and share your thoughts below.
Disclaimer: This article reflects ongoing reporting and may be updated as new data becomes available. Always consult official statements for the latest details on policy and investigations.
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