Trump Threatens to Dismiss Federal Reserve Chair Powell Over Interest Rate Dispute

Wed Apr 15 2026 16:44:55 GMT+0000 (Coordinated Universal Time)

U.S. President Donald Trump has issued a warning to Federal Reserve Chair Jerome Powell, threatening to terminate his position if he does not resign by May, amid ongoing disagreements over interest rate policies.

In a bold move, President Donald Trump has hinted at the possibility of firing Federal Reserve Chair Jerome Powell unless he steps down by the end of his term in May. This threat comes amidst a backdrop of tense exchanges between the two over Powell's hesitance to lower interest rates, a demand Trump has repeatedly advocated for. Powell's term ends on May 15, and he intends to remain until his successor is confirmed, a decision that has drawn ire from the President. Trump has expressed frustration over Powell's performance, particularly regarding the Federal Reserve's controversial renovation project and financial strategies.

U.S. President Donald Trump has threatened to fire Federal Reserve Chair Jerome Powell if he does not step aside at the end of his term in May.

The two have been embroiled in a bitter spat over Powell's reluctance to cut the central bank's interest rate, despite Trump's repeated calls.

Powell's term expires on May 15, but he is planning to remain in post until his successor, Kevin Warsh, is confirmed by the Senate.

Then I'll have to fire him, Trump told Fox Business, when asked about Powell's plans to stay on in the job.

I've held back firing him. I've wanted to fire him, but I hate to be controversial, Trump stated.

Thom Tillis, an influential Republican senator on the committee which oversees nominations for the Federal Reserve chair, has threatened to block Warsh's confirmation. If Warsh is not confirmed before Powell's term expires, he plans to stay on temporarily in the post.

That's what the law calls for. That's what we've done on several occasions, Powell has said.

Tillis has warned Trump he will not let Warsh's appointment go ahead unless a criminal investigation into Powell, linked to the renovation of the Federal Reserve building, is dropped.

Trump expressed hope that Tillis would drop his opposition to the appointment, adding that he is an American… he knows what to do.

However, he stated that he was not prepared to have the probe into Powell dropped, affirming, Don't you think we have to find out what happened there? I have to find out.

Trump has accused Powell of mishandling the Federal Reserve renovation, spending billions on a project, which he suggested could have been done for tens of millions.

Previously, Trump has called Powell a knucklehead and claimed he was doing a lousy job after his demands for interest rate cuts were ignored.

Following news of Trump's threats in 2025, stock markets and the U.S. dollar experienced declines.

The President later denied that he was going to sack Powell, saying it was highly unlikely unless he has to leave for fraud. If Trump were to fire Powell, it would mark a significant deviation from tradition, being the first dismissal of a Federal Reserve chair.

Trump appointed Powell to lead the Federal Reserve during his first term in 2017, praising his steady leadership, sound judgement, and policy expertise. Powell was reappointed by Joe Biden in 2021.