Trump Says He Has No Plans To Fire Fed Chair Powell Despite DOJ Investigation

US President Donald Trump has stated that he does not plan to fire Federal Reserve Chair Jerome Powell, despite the Department of Justice (DOJ) launching a criminal investigation into the leader of the US central bank.

“I don’t have any plan to do that,” Trump told Reuters in an interview when asked if he would attempt to remove Powell from his job.

Asked whether the investigation gave him grounds to do so, Trump added: “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.”

According to US federal law, the Fed governors can only be fired for cause, not for policy differences.

Powell’s term as Fed chief ends in May, but he is not obligated to leave the board of governors until 2028.

However, President Trump said he intended to go ahead and nominate Powell’s replacement within the next few weeks, with an inclination toward former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett.

“The two Kevins are very good,” Trump said, adding, “You have some other good people too, but I’ll be announcing something over the next couple of weeks.”

Trump dismissed criticism, including that from lawmakers whose support he’ll need to confirm his choice to succeed Powell. “I don’t care,” he said. “They should be loyal. That’s what I say.”

Trump Dismisses Backlash as Debate Over Fed Independence Heats Up

Trump also dismissed the widely held view among analysts, investors, and economic policymakers worldwide that eroding central bank independence could undermine the value of the U.S. dollar and spark inflation. “I don’t care,” he repeated.

Powell had earlier in the week stated that the DOJ had served the central bank with grand jury subpoenas, which stemmed from a probe into the renovation project and Powell’s testimony to Congress about it.

The probe sets yet another stunt by Trump in an escalation that has seen the president attack the Fed due to high interest rates.

Powell, in a statement Sunday, called the renovation investigation a pretext for a broader pressure campaign about rates.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions or whether instead monetary policy will be directed by political pressure or intimidation,” he said.

After the release of positive consumer price Index (CPI) data for December, Trump stated that he believes it is low enough to justify cutting interest rates, criticizing Powell for higher rates.

“We have very low inflation. That would give ‘too late Powell’ the chance to give us a nice, beautiful, big rate cut,” Trump told reporters before departing Washington for an economic event in Detroit.