Trump Threatens to Fire Powell, Escalating Tensions at the Federal Reserve

Trump threatens Jerome Powell

Tension at the Fed

Dispute over interest rates

The President of the United States, Donald Trump, intensified his pressure on Jerome Powell this Wednesday by warning that he could fire him if he does not step down when his term ends in May.

The statement came during an interview with Fox Business, where the president reiterated his dissatisfaction with the central bank’s monetary policy and its refusal to aggressively cut interest rates.

Why it matters: Trump’s threat reignites tensions over the independence of the Federal Reserve and could trigger an unprecedented legal conflict.

Trump escalates pressure on Powell

“The President of the United States, Donald Trump, is not easing his pressure on the Federal Reserve. He has said he will fire Jerome Powell if he does not step down from his position as Fed chair in May.”

https://t.co/1TE5Jr4gWK

— EL PAÍS América (@elpais_america) April 15, 2026

Trump said he has considered firing Powell on several occasions, although he has not done so yet.

“I will have to fire him… if he doesn’t leave on time,” the president said during the interview.

He added that he has avoided taking that step to prevent controversy, but emphasized his growing frustration.

For months, Trump has pushed for aggressive interest rate cuts—a position Powell has not followed.

You may also like: Trump Administration Pushes for “Proof of Citizenship” to Open Bank Accounts in the U.S.

The president also backed a Department of Justice investigation into alleged cost overruns in the renovation of the Fed’s headquarters.

Trump raised concerns about Powell’s actions, suggesting possible wrongdoing.

“Whether it’s incompetence, corruption, or both, I think it needs to be investigated,” he said, further fueling the Federal Reserve conflict.

Jerome Powell defends his position

“Donald Trump shakes the U.S. financial system. Trump EXPLODES and threatens to fire Jerome Powell. ‘If he doesn’t resign, I WILL FIRE HIM,’ unleashing a direct clash with the Federal Reserve.” pic.twitter.com/rXiHpvGQHr

— ☬ ANÓNIMO ☬ (@anonimomaximoxd) April 15, 2026

Jerome Powell has rejected the accusations and maintains that he has committed no wrongdoing.

The Fed chair described the investigation as a “pretext” tied to disagreements with the White House.

According to Powell, the Federal Reserve has acted based on its own economic assessments.

Last month, he said he does not plan to leave his position while the investigation continues.

He also indicated he is willing to remain in an interim capacity after May if a successor is not confirmed.

Jerome Powell could continue serving as a member of the Board of Governors until 2028.

In March, a federal judge dismissed Department of Justice subpoenas against Powell.

The ruling determined that the investigation had political motivations.

Jerome Powell’s succession and potential legal implications

Trump has already nominated Kevin Warsh as the next Fed chair.

His Senate confirmation hearing is scheduled for next week.

Treasury Secretary Scott Bessent expressed confidence that Warsh will be confirmed without delays.

Bessent said the process will move forward as planned and that the issue will soon fade from debate.

However, the threat of dismissal could face legal obstacles.

The law states that Federal Reserve governors cannot be removed without cause.

The Trump administration has already attempted to remove Governor Lisa Cook.

That case, related to mortgage fraud allegations, is currently under review by the Supreme Court of the United States.

Meanwhile, the Federal Reserve keeps interest rates between 3.5% and 3.75%.

The institution will meet on April 28 and 29 to decide on interest rates.

That meeting could be the last one chaired by Jerome Powell amid the ongoing Federal Reserve conflict.