In a fresh development in the long-simmering feud between US President Donald Trump and Federal Reserve Chair Jerome Powell, Trump on Tuesday said that the Powell will be "fired" if he does not leave on time.
He added that he hopes that Kevin Warsh's nomination as the new chair of Fed is approved by the Senate.
Moreover, addressing the US Department of probe into Powell, Trump emphasised that he is not planning to drop it since they "have to find out what happened."
In a rapid escalation of the conflict between the two, the Justice Department had launched a probe into Jerome Powell in January connected to the renovation of the Federal Reserve's headquarters.
“He's into billions and billions of dollars, and it looks like they won't open for a long time,” Trump had said, referring to the renovation.
The probe was viewed as a dramatic escalation of the Trump administration's attacks on the Fed and raised new questions about the institution's independence. Notably, opening the criminal investigation had prompted blowback from Republican senators.
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In a show of unity, former Federal Reserve chairs Janet Yellen, Ben Bernanke and Alan Greenspan issued a joint statement saying, "The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence."
In the past, Trump has repeatedly attempted firing Powell before his term as chair ends in May, and officially nominated Kevin Warsh to take his place if approved by the Senate.
Things took an interesting turn after the last FOMC when during a press briefing, Jerome Powell announced that he has no intention to leave the board unless the investigation is completely over. He further added that he would serve as Chair pro-term until a successor is confirmed.
"On the question whether I will leave while the investigation is ongoing, I have no intention of leaving the board until the investigation is well and truly over with transparency and finality,” he remarked.
Trump has been pushing for larger rate cuts by the Fed, arguing that it is needed to stimulate the economy. Interest rates were kept steady by Fed at 3.5%–3.75% for the second consecutive time in the last meeting which took place in March.
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