Trump Affirms Powell’s Position Amid Investigation, Reuters Reports
President Donald Trump recently reaffirmed that he does not intend to dismiss Jerome Powell from his role as Chair of the Federal Reserve. This announcement comes amid an ongoing investigation by the Justice Department into a renovation project associated with the central bank.
Trump’s Remarks on Powell’s Position
In an interview with Reuters, Trump stated, “I don’t have any plan to do that.” He acknowledged that it’s premature to determine whether the investigation provides grounds for ousting Powell, noting they are currently in a “holding pattern.” He emphasized that he is unable to elaborate on the situation further.
Legal Context and Political Criticism
Federal law dictates that Federal Reserve governors can only be removed for specific causes, not merely for policy disagreements. Trump’s focus appeared to brush aside criticism from Republican lawmakers. He remarked, “I don’t care,” advocating for loyalty among party members.
- Trump’s future nominations are expected to move forward within weeks.
- Senator Thom Tillis, who serves on the Senate Banking Committee, expressed intent to block any Fed nominations until the investigation concludes.
Potential Successors for Powell
During his interview, Trump praised two candidates: Kevin Hassett, a senior economic adviser, and Kevin Warsh, a former Federal Reserve Governor. He mentioned, “The two Kevins are very good” while alluding to other strong candidates. An official announcement regarding Powell’s potential successor is anticipated in the coming weeks.
Details of the Investigation
Powell revealed that the Justice Department has issued grand jury subpoenas related to the renovation project and his congressional testimony concerning it. This investigation signifies a noteworthy escalation in the Trump administration’s conflict with the Federal Reserve, stirring concerns about the Fed’s independence.
Powell recently articulated that the inquiry may be a guise for a broader campaign to influence monetary policy. He expressed concerns that the independence of the Federal Reserve might be compromised, stating, “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.”
