Trump threatens to fire Powell from the Fed board

Powell previously said he would continue to serve as chairman pro tempore if Warsh is not confirmed until his regular term expires in May. Trump has repeatedly sharply criticized Powell and unsuccessfully pushed for significant interest rate cuts. The US Federal Reserve generally acts independently of political instructions.

Powell has also come into the sights of the US judiciary in connection with the renovation of the Fed headquarters in Washington. He described the criminal investigations as a pretext to put pressure on him regarding interest rate policy. At the same time, Powell said in March that he would not leave the Fed at least until the investigation initiated by the public prosecutor’s office was completed. He has also not yet decided whether he wants to keep his seat on the Fed Board of Directors, which he could hold until 2028.

Of the seven members of the Federal Reserve’s Federal Open Market Committee (FOMC), three were nominated by Joe Biden. Powell himself was appointed head of the Federal Reserve by the US President during Trump’s first term in office. However, since taking office, he has resisted any influence from the White House.

US Treasury Secretary Scott Bessent appeared optimistic about Powell’s successor in front of media representatives. He sees Republican influence paving the way in the Senate and the necessary committees to appoint Warsh as the new head of the US Federal Reserve by May.