WASHINGTON, April 15, 2026 Former U.S. President Donald Trump has threatened to dismiss Federal Reserve Chair Jerome Powell from the central bank’s board, escalating tensions over monetary policy and a pending criminal investigation into the Fed’s headquarters renovation.
## Trump’s Push for Warsh and Fed Shakeup Trump expressed confidence that his nominee, Kevin Warsh, will soon be confirmed by Congress to lead the Federal Reserve, according to corroborated sources. The move comes as Powell’s term as chair is set to end in May, though he has stated he will continue serving as interim chairman if Warsh is not confirmed by then.
U.S. Treasury Secretary Scott Bessent also voiced optimism about Warsh’s confirmation, signaling alignment within Trump’s circle. Powell, originally appointed by Trump during his first term, has faced repeated criticism from the former president, who has urged aggressive interest rate cuts—a stance at odds with the Fed’s traditional independence from political directives.
## Investigation and Accusations of Political Pressure Powell is currently under investigation by the U.S. Department of Justice regarding the renovation of the Fed’s Washington headquarters. He has characterized the probe as a pretext to pressure him on monetary policy, stating in March that he would not resign until the investigation concludes.
The Fed’s operational independence is a cornerstone of U.S. economic policy, yet Trump’s public critiques and the looming investigation have raised concerns about political interference. Three of the seven members of the Federal Open Market Committee (FOMC), which sets interest rates, were appointed by President Joe Biden, adding another layer of complexity to the board’s dynamics.
Powell’s defiance underscores the deepening rift between the Fed and Trump, who has historically clashed with central bank leadership over rate decisions. The outcome of Warsh’s confirmation and the DOJ investigation could reshape the Fed’s trajectory in the coming months.