Trump Threatens to Fire Fed Chair Powell If He Stays on Board

President Donald Trump threatened on Wednesday to fire Federal Reserve Chair Jerome Powell if he remains on the central bank's Board of Governors after his term as chair expires on May 15. The remarks, made during an interview on Fox Business, came amid an ongoing Justice Department investigation into Powell's handling of a $2.5 billion renovation project at Federal Reserve headquarters in Washington.

Trump, who has repeatedly criticized Powell for not lowering interest rates more aggressively to support economic growth, nominated former Fed Governor Kevin Warsh in January to succeed him as chair. Warsh's confirmation by the Senate remains delayed, in part due to opposition from outgoing Republican Senator Thom Tillis of North Carolina. Tillis stated he would block any Fed nominees, including for chair, until the Justice Department's inquiry into Powell is resolved transparently.

The investigation, which began in January, focuses on allegations that Powell provided false statements to Congress about the renovation costs and failed to comply with permitting regulations. Powell confirmed the probe in a January video statement, noting that the Justice Department had served grand...