President Donald Trump threatened Wednesday to fire Federal Reserve Chair Jerome Powell if he refuses to leave the central bank at the end of his term, despite Powell’s vow to stay on the board until a criminal investigation into his conduct is completely resolved.
Trump made the comment in a Fox Business interview, saying, “Then I’ll have to fire him,” when asked by Maria Bartiromo what would happen if Powell remains in place after May 15.
The escalating standoff comes just a day after federal prosecutors made an unannounced visit to the Federal Reserve’s headquarters, seeking access to the central bank’s multibillion-dollar renovation site, only to be turned away by staff.
The visit by officials from U.S. Attorney Jeanine Pirro’s office came as the Justice Department’s criminal probe of Fed Chair Jerome Powell continues to stall in court. The investigation centers on Powell’s testimony last year about the yearslong renovation project at the Fed’s historic buildings in Washington.
Last month, Chief Judge James Boasberg blocked subpoenas served on the Fed, writing that the government had produced “essentially zero evidence” of a crime and “no evidence whatsoever” that Powell had done anything wrong other than “displeasing the President.”
Earlier this month, the Justice Department also lost a bid to revive those subpoenas.
The Fed’s outside counsel, Robert Hur, wrote to prosecutors Tuesday that it was inappropriate to try to bypass the courts and asked them not to contact the central bank outside the presence of counsel.
Pirro defended the attempted inspection in a statement, saying the renovation project’s nearly 80% cost overruns deserved serious review.
The dispute is also complicating politics on Capitol Hill. Sen. Thom Tillis, R-N.C., said he will not vote to advance Kevin Warsh, President Donald Trump’s nominee to succeed Powell as Fed chair, from the Senate Banking Committee until the Justice Department ends its investigation.
The renovation project has cost about $2.5 billion so far, according to CBS News. The Fed is not funded through tax dollars.