Amid DOJ probe, Trump says he has no plan to fire Fed chief Powell, for now

U.S. President Donald Trump said on Wednesday he has no immediate plans to remove Jerome Powell from his post, even as the Justice Department pursues a criminal investigation into the Federal Reserve chief, while leaving open what he might ultimately decide.

“I don't have any plan to do that,” Trump told Reuters in an interview when asked whether he would attempt to fire Powell.

Pressed on whether the investigation provided grounds for removal, Trump said: “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 runs until May, though he is not required to leave the Washington-based Board of Governors until 2028.

Trump indicated he is leaning toward naming either former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett as Powell’s eventual successor. He said Treasury Secretary Scott Bessent is not under consideration, “because he wants to stay where he is.”

“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 comments come amid growing scrutiny of a Justice Department investigation into Powell over cost overruns tied to a $2.5 billion renovation of two historic buildings at the Fed’s headquarters. Powell disclosed the probe on Sunday, denied wrongdoing, and said the unprecedented step was being used to pressure him over his refusal to meet Trump’s long-standing demands for sharply lower interest rates.

The investigation has drawn criticism from senior Republican senators, whose votes Trump will need to confirm a successor, as well as foreign officials, investors and former U.S. government figures from both parties, who argue the move risks politicising central bank decision-making. The Trump administration has said it has a duty to investigate potential wrongdoing.

Trump, who appointed Powell during his first term, has repeatedly criticised the Fed chief for not cutting benchmark rates “either as quickly or as far” as he wants. With cost-of-living concerns weighing heavily on voters ahead of November’s midterm elections, Trump’s handling of inflation has also come under pressure.

Dismissing criticism that his actions could undermine the independence of the central bank, Trump was blunt. “I don't care,” he said. “They should be loyal. That's what I say.”

He also brushed aside warnings from analysts and policymakers that weakening Fed independence could erode the value of the U.S. dollar and fuel inflation. “I don't care,” he repeated.

Trump’s remarks come as he continues to test the limits of presidential authority. He has already attempted to remove another Fed official, Governor Lisa Cook, who is challenging her dismissal in a legal case set to be argued before the Supreme Court next week.

“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.”

(With inputs from Reuters)