Once again, Trump threatens to fire Fed Chair Jerome Powell

President Trump accompanied Federal Reserve chairman Jerome Powell on a tour of the Fed's headquarters renovation last summer. The administration is investigating cost overruns on the project.

President Trump accompanied Federal Reserve chairman Jerome Powell on a tour of the Fed’s headquarters renovation last summer. The Justice Department is investigating cost overruns on the project.

Chip Somodevilla/Getty Images North America

Chip Somodevilla/Getty Images North America

President Trump once again threatened to fire Federal Reserve Chairman Jerome Powell, whose term is set to expire in a month. Trump also vowed to continue a criminal investigation of the central bank, which could complicate the path of installing Trump’s nominee to replace Powell.

The president’s threat came in an interview with Fox Business which aired on Wednesday.

“He’s doing a bad job,” Trump said of Powell. “He should be lowering interest rates.”

Trump has repeatedly threatened to remove the Fed chairman, although it’s not clear he has the authority to do so, absent a showing of serious wrongdoing. The Supreme Court is currently weighing a related case after Trump tried to fire a member of the Fed’s governing board, Lisa Cook. The high court has allowed Cook to remain on the job while that case is pending.

Powell’s term as Fed chairman is set to expire in mid-May, but he’s promised to stay on the job until a successor is confirmed.

“That is what the law calls for,” Powell told reporters last month. “And that’s what we’re going to do in this situation.”

Powell could opt to stay on Fed’s board

Powell also has the option to remain on the Fed’s governing board until 2028, and he’s said he will not step down until the Justice Department revolves its probe of cost overruns at the Fed’s headquarters renovation project.

Last month, a federal judge ruled those cost overruns are a mere pretext, and concluded the real purpose of the Justice Department’s probe is to intimidate the central bank.

“The Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President,” Judge James Boasberg wrote in a decision quashing subpoenas. “There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will.”

So far, prosecutors have not backed down. The Wall Street Journal and The New York Times reported that two prosecutors made a surprise visit to the Fed’s headquarters construction site on Tuesday. NPR has not independently confirmed the visit.

That could backfire on the president, delaying the confirmation of Kevin Warsh to serve as the next Fed chair, and leaving Powell in the position longer.

A key member of the Senate Banking Committee, Republican Thom Tillis of North Carolina, has said he will not vote to confirm Trump’s nominee until the Justice Department’s probe is resolved. The committee is scheduled to hold a hearing on Warsh’s nomination next week.

Trump told Fox Business he would not instruct prosecutors to drop their probe of the Federal Reserve.

“Don’t you think we have to find out what happened there?” the president said.

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