Trump threatens to fire Fed Chair Powell
Relations between the White House and the U.S. Federal Reserve have become strained. President Donald Trump has suggested that Federal Reserve Chair Jerome Powell could be replaced if he remains in office after his term ends in May.
This was reported by the BBC.
Monetary policy has been the main sticking point: Trump has repeatedly called for a cut in the federal funds rate, but Powell has ignored these calls. Although the current Fed chair’s term expires on May 15, he intends to remain in office until the Senate confirms his successor, Kevin Warsh. Trump’s reaction to these plans was immediate.
“Then I’ll have to fire him. I’ve been holding back from firing him. I wanted to fire him, but I can’t stand scandals,” the president said in an interview with Fox Business.
The situation is complicated by political blackmail within the Republican Party. Influential Senator Tom Tillis has promised to block Kevin Warsh’s nomination unless the administration halts the criminal investigation against Powell. The case concerns the costly renovation of the Federal Reserve building. Trump accuses Powell of mismanaging finances, claiming that billions were spent on the project instead of tens of millions.
“Don’t you think we should find out what happened there? I have to find out,” Trump emphasized, refusing to compromise with Tillis on closing the case.
Earlier, Donald Trump had already called Powell a “knucklehead” and criticized him for his “terrible job.” It is worth noting that the dismissal of a sitting Fed chair by the president is unprecedented in American history. In 2025, mere rumors of such a move led to a stock market crash and a weakening of the dollar.
Although Trump himself appointed Powell in 2017, he is now taking a radical stance, which threatens the stability of the U.S. financial system.
Trump hasannounced a possible deal with Iran as early as this month.
Additionally, U.S. Vice President J.D. Vance may once again lead the American delegation in potential negotiations with Iran.
As a reminder, negotiations between the U.S. and Iran began in Islamabad.
Trump also announced the “imminent opening” of the Strait of Hormuz.
As a reminder, U.S. President Donald Trump is demanding that European allies present concrete plans within a few days to ensure the safety of shipping in the Strait of Hormuz.
As a reminder, U.S. President Donald Trump stated that he agreed to a two-week ceasefire with Iran, during which the parties plan to finalize a definitive agreement.
Iran has agreed to open the Strait of Hormuz to shipping for two weeks—for the duration of the ceasefire with the U.S. This agreement is part of broader negotiations on de-escalation in the region.
