'Incompetent': Trump Threatens To Fire Fed Chair Powell If He Does Not Step Aside Next Month

Last Updated:April 15, 2026, 18:50 IST

Trump called Jerome Powell a "disaster" and did not hold back on the building dispute that has become a fresh flashpoint between the two.

US President Donald Trump threatened to fire Federal Reserve Chair Jerome Powell if he remains in his post beyond the expiry of his term next month, escalating a long-running feud with the central bank chief over interest rates and a costly headquarters renovation.

“Then I’ll have to fire him," Trump told Fox Business when asked about Jerome Powell potentially staying on at the Fed after his chairmanship expires on May 15. Trump called Jerome Powell a “disaster" and did not hold back on the building dispute that has become a fresh flashpoint between the two.

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He said, “Here’s a man who took this little, tiny building and a couple of other little, tiny complex, and he’s spending more than $3 billion. I want to know who the contractor is, because that contractor is making billions of dollars, perhaps. It is probably corrupt, but what it really is is incompetent, and we have to show the incompetence of that."

The Fed has attributed the cost overruns on its Washington headquarters renovation to unforeseen conditions, including more asbestos than anticipated, toxic soil contamination and a higher-than-expected water table.

What Happens If Powell’s Replacement Is Not Confirmed In Time?

Trump’s nominee to replace Jerome Powell, former Fed governor Kevin Warsh, has not yet been confirmed by the US Senate. Under Fed regulations, if no replacement is in place by May 15, Jerome Powell could remain as chair on a pro tempore basis. Jerome Powell himself confirmed this in March, saying, “That’s what the law calls for. That’s what we’ve done on several occasions."

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The Senate Banking Committee has scheduled a confirmation hearing for Warsh on April 21, but a significant obstacle has emerged. North Carolina Republican Senator Thom Tillis, a key committee vote, has said he will not back Warsh until a Department of Justice criminal investigation into Jerome Powell- related to the headquarters renovation- has concluded.

Trump said he was hopeful Tillis would come around, saying the senator “is an American; he knows what to do." But he acknowledged the probe, led by US Attorney for the District of Columbia Jeanine Pirro, could delay Warsh’s confirmation. Trump said he was unwilling to call off the investigation to smooth the path, asserting, “Does that mean we stop a probe of a building that I would have done for $25 million that’s going to cost maybe $4 billion? Don’t you think we have to find out what happened there?"

What Jerome Powell Has Said

Jerome Powell has shown no intention of going quietly. Last month he said he would not resign as long as the Justice Department investigation remained ongoing.

“I have no intention of leaving the Board until the investigation is well and truly over with transparency and finality," Powell said.

Jerome Powell’s term as Fed chair ends May 15, but his term as a Fed governor runs until January 2028. He has not said whether he intends to continue serving on the Board after his chairmanship ends.

News world 'Incompetent': Trump Threatens To Fire Fed Chair Powell If He Does Not Step Aside Next Month

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