President Trump Threatens Direct Dismissal Of Jerome Powell Amid Senate Deadlock Over Federal Reserve Succession

President Trump warns he will fire Jerome Powell if he doesn't leave the Fed by May 15, as a Senate standoff over Kevin Warsh's confirmation continues.

By: AXL Media

Published: Apr 16, 2026, 8:28 AM EDT

Source: Information for this report was sourced from BBC News (via Archie Mitchell and Ana Faguy)

Executive Ultimatum Targets Central Bank Independence

A long-standing conflict between the White House and the Federal Reserve reached a critical peak after President Donald Trump publicly threatened to fire Chair Jerome Powell. The president’s ultimatum specifically targets Powell’s plan to remain in his post temporarily if the Senate fails to confirm his successor before May 15. Speaking to Fox Business, Trump stated that while he has previously avoided such a controversial move, he is prepared to terminate Powell’s employment to ensure a transition of power. This potential dismissal would represent a historic break with legal and institutional precedent, as no Federal Reserve chair has ever been fired by a sitting president.

Senate Stalemate Over Warsh Confirmation

The primary obstacle to the administration’s transition plan is a group of influential Republican senators on the committee overseeing Federal Reserve nominations. Senator Thom Tillis has threatened to block the appointment of the president's nominee, Kevin Warsh, unless a criminal investigation into Powell is dropped. While Treasury Secretary Scott Bessent expressed optimism that Warsh would be confirmed before the mid-May deadline, the legislative blockade remains firm. Tillis and other committee members argue that the ongoing probe into Powell is hindering the president’s ability to seat his chosen leadership at the central bank.

DOJ Investigation Into Building Renovations

The criminal probe at the center of the Senate dispute involves alleged financial mismanagement regarding the renovation of the Federal Reserve building. President Trump has accused Powell of mishandling the project, claiming that billions of dollars were spent on a renovation that should have cost tens of millions. Despite calls from Senate Majority Leader John Thune to end the investigation in the interest of national stability, the president has refused to intervene. Trump has maintained that a thorough inquiry is necessary to "find out what happened" regarding the significant expenditure of federal funds.