US President Donald Trump has said that Federal Reserve Chair Jerome Powell's position remains secure for now, notwithstanding a Justice Department criminal investigation into the Federal Reserve's renovation of its headquarters. Trump stressed that any future course of action is yet to be decided.
In an interview with Reuters, Trump said, "I don't have any plan to do that," when asked if he would take steps to remove Powell from his job.
On being asked if the criminal investigation gave him the grounds to remove Powell, Trump said, “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.”
While Powell's term at the helm of the Federal Reserve is set to expire in May, his seat on the Board of Governors runs through to 2028.
Trump indicated he was leaning toward former Fed Governor Kevin Warsh or National Economic Council director Kevin Hassett as potential successors to Powell, adding that Treasury Secretary Scott Bessent was no longer under consideration "because he wants to stay where he is."
“The two Kevins are very good," Trump said. "You have some other good people too, but I'll be announcing something over the next couple of weeks."
The Trump administration has initiated a criminal investigation into Federal Reserve chair Jerome Powell over spending overruns on a $2.5 billion renovation of two historic buildings at the central bank's headquarters. Powell, who made the investigation public on Sunday, has denied any misconduct and said the move was aimed at influencing monetary policy decisions.
Several senior Republican senators aligned with Trump have joined international economic officials, investors and former US government figures from across the political spectrum in warning that the move risks dragging an independent policy process into partisan politics.
The Trump administration maintains that it is simply fulfilling its responsibility to probe possible wrongdoing.
Trump repeatedly attacked Jerome Powell and the Federal Reserve last year over their refusal to cut interest rates, using a string of personal insults. Powell was appointed to lead the central bank during Trump's first term in office in 2017.
Trump brushed aside the objections, including those voiced by legislators whose backing would be required to secure approval of any nominee to replace Powell.
“I don't care," he said. "They should be loyal. That's what I say.”
