Key Takeaways
- President Trump has no immediate plans to remove Fed Chair Jerome Powell despite an ongoing DOJ investigation.
- The investigation is about cost overruns for a project at the Fed headquarters, which Powell claims is a pressure tactic.
US President Donald Trump stated he does not plan to dismiss Fed Chair Jerome Powell after the Justice Department initiated a criminal investigation tied to a $2.5 billion Fed renovation project, Reuters reported Wednesday.
Powell has accused the administration of using the probe to influence the central bank’s policy decisions and has denied any wrongdoing.
Trump said it was too soon to decide on any action, adding that Powell’s situation remains under review. Powell’s chair term expires in May, though he may stay on the Fed’s board until 2028. Trump brushed off bipartisan criticism that the probe politicized monetary policy.
Trump said he is leaning toward nominating either Kevin Warsh or Kevin Hassett to lead the Fed and confirmed Treasury Secretary Scott Bessent is not under consideration. He said an announcement would be made in the coming weeks.
Trump also rejected concerns that attacking Fed independence could harm the economy or the dollar, saying he believes presidents should have a say in monetary policy and criticizing Powell for resisting rate cuts.