U.S. President Donald Trump said on Wednesday that he has no intention of dismissing Federal Reserve Chair Jerome Powell, despite the Department of Justice threatening a criminal investigation into the central banker.
Speaking to Reuters, Trump said, “I don’t have any plan to do that,” while adding that it was still “too early” to determine his final approach. He did not clarify whether the investigation could eventually provide grounds to remove Powell.
Powell’s term as Fed chair is set to expire in May, although he has the option to remain on the Federal Reserve’s board of governors until 2028. Trump said he is leaning toward appointing either former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett as Powell’s successor.
“The two Kevins are very good,” Trump said, adding that he expects to make a decision and announcement within the next couple of weeks.
Earlier this week, Powell revealed that he is facing a criminal investigation related to alleged cost overruns tied to the Federal Reserve’s headquarters renovation project. Powell has denied any wrongdoing, arguing that the probe is being used as a pretext to pressure him after he resisted Trump’s long-standing calls for lower interest rates.
Powell’s disclosure heightened concerns about the Federal Reserve’s independence, particularly as Trump prepares to nominate the next chair. Some lawmakers, including members of Trump’s own party who will vote on the nomination, have stressed the importance of keeping the central bank independent.
Trump dismissed that criticism, telling Reuters, “I don’t care,” and adding that lawmakers “should be loyal.”
