President Trump said Wednesday he has no plans to fire Fed Chairman Jerome Powell despite a criminal investigation into the central banker – after reportedly offering the job to Jamie Dimon months earlier in what the Wall Street titan interpreted as a “joke”.
“I don’t have any plan to do that,” Trump told Reuters in an interview Wednesday when asked if he would attempt to remove Powell from his job.
Asked whether the DOJ probe gives him the power to fire 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.”
Months earlier, Trump had offered Dimon – the CEO of JPMorgan Chase who has supported many of Trump’s policies – the top job during a meeting in the White House, although Dimon ”took the offer as a joke,” according to the Wall Street Journal.
“Until an announcement is made by President Trump, any reporting about the Federal Reserve Chairman nominations process is pointless speculation,” White House spokesman Kush Desai told The Post.
Powell – who Trump has long railed against for not slashing interest rates fast enough – is currently facing a Justice Department probe over the Fed’s over-budget headquarters renovation.
His term as chairman ends in May, though Powell could stay on as a member of the Fed’s board through 2028. He has so far declined to comment on whether he plans to remain on the board.
Trump signaled he is looking at either former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett to replace Powell, adding that he has ruled out Treasury Secretary Scott Bessent “because he wants to stay where he is.”
“The two Kevins are very good,” Trump told Reuters. “You have some other good people too, but I’ll be announcing something over the next couple of weeks.”
BlackRock exec Rick Rieder and Fed Governor Christopher Waller have also been interviewed for the role.
Powell – who has largely refrained from responding to Trump’s personal attacks in the past – spoke out against the federal investigation on Sunday, arguing it is motivated by politics.
“No one — certainly not the chair of the Federal Reserve — is above the law. But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said in a Sunday statement.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” he added.
Foreign central bank leaders, former US government officials and current American lawmakers across the political spectrum have blasted the investigation and raised alarms about installing a Fed leader who could potentially threaten the bank’s independence.
Sen. Thom Tillis – a Republican from North Carolina and member of the Senate Banking Committee’s slight GOP majority – on Sunday threatened to block any of Trump’s candidates for the Federal Reserve after news of the investigation broke.
Dimon also said that “anything that chips away” at the Fed’s independence “is probably not a good idea.”
Trump responded on Tuesday that Dimon “probably wants higher rates, maybe he makes more money that way.”
“I don’t care,” Trump told Reuters when asked to respond to criticism from lawmakers who will have to vote through his pick to lead the Fed. “They should be loyal. That’s what I say.”
As for broader criticism from foreign investors and economists, Trump repeated, “I don’t care.”
“A president should have something to say” about decisions out of the Federal Reserve, Trump told Reuters. “I made a lot of money with business, so I think I have a better understanding of it than Too Late Jerome Powell.”
The president has ramped up pressure on the Fed to slash interest rates in an attempt to help Americans feel better about the economy – as voters rank affordability a top issue ahead of this year’s midterm elections.
The central bank issued three quarter-point cuts last year, lowering the target range to 3.5% to 3.75%.
Along with attacks on Powell, who Trump has called “stupid” and “crooked,” the White House has also pushed Fed Governor Lisa Cook to step down, accusing her of mortgage fraud. Cook called those allegations “baseless.”
Meanwhile, Stephen Miran – Trump’s economic adviser who stepped into a seat vacated by Adriana Kugler – will see his term on the Fed board expire in January. There are also rumors about potential retirements from the board, such as Vice Chair Philip Jefferson.
Federal prosecutors are investigating Powell over his testimony last summer about the central bank’s renovations.
Last month, Trump threatened to sue Powell for “gross incompetence,” claiming the cost of the project had run up to $4 billion – roughly $1.5 billion over budget.
On its website, the Fed attributed spending increases to unexpected costs of materials and labor, more asbestos than anticipated and toxic contamination in the soil. It added the project will “reduce costs over time by allowing the Board to consolidate most of its operations.”
