U.S. President Donald Trump said on Wednesday that he currently has no plans to remove Federal Reserve Chair Jerome Powell, despite a Justice Department criminal investigation into the Fed chief. Trump told reporters it was “too early” to determine what action, if any, he might take.
“I don’t have any plan to do that,” Trump said when asked if he would attempt to remove Powell from his position. Asked whether the investigation provided grounds for dismissal, he added, “Right now, we’re in a little bit of 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.”
Powell’s current term as Fed chair ends in May 2026, although he is not required to leave the Board of Governors until 2028. Trump suggested he is considering either former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett as potential successors. He ruled out U.S. Treasury Secretary Scott Bessent, citing Bessent’s desire to remain in his current role. “The two Kevins are very good,” Trump said. “You have some other good people too, but I’ll be announcing something over the next couple of weeks.”
The investigation into Powell focuses on cost overruns related to a $2.5 billion renovation project at the Federal Reserve’s headquarters. Powell has denied wrongdoing and characterized the investigation as an unprecedented pressure tactic linked to Trump’s longstanding demand for lower interest rates.
Trump has previously criticized Powell publicly for not reducing benchmark interest rates as quickly or as significantly as he prefers. He dismissed concerns from economists, investors, and members of his own Republican party that any move to politicize the Fed could undermine central bank independence, weaken the U.S. dollar, and spur inflation. “I don’t care,” Trump said, repeating the statement in response to questions about criticism of his approach.
Throughout his presidency, Trump has tested the limits of executive authority over monetary policy. He has previously sought to remove other Fed officials, including Governor Lisa Cook, who is challenging her termination in a case scheduled for the Supreme Court. “A president should have something to say about Fed policy,” Trump told Reuters. “I made a lot of money with business, so I think I have a better understanding of it than Too Late Jerome Powell.”
