Trump has placed public pressure on Powell to lower interest rates more quickly, saying that not doing so harms the U.S. economy.
President Donald Trump said in an interview that he has no plans to remove Federal Reserve Chairman Jerome Powell. The president’s comments follow Department of Justice (DOJ) officials’ revelation this week that Powell is under investigation over the central bank’s ongoing renovations.
“I don’t have any plan to do that,” Trump told Reuters in an interview published Jan. 14, when asked whether he’s planning to remove Powell.
When asked whether the investigation gave Trump grounds to fire Powell, the president 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.”
Powell’s term as the head of the central bank is due to end in May 2026. His term with the Federal Reserve’s Board of Governors ends in 2028.
Also in the Reuters interview, Trump said he might nominate National Economic Council Director Kevin Hassett or former Fed Governor Kevin Warsh to head the Fed. He also said he had ruled out Treasury Secretary Scott Bessent as head of the institution “because he wants to stay where he is.”
“The two Kevins are very good,“ Trump said, referring to Hassett and Warsh. ”You have some other good people, too, but I’ll be announcing something over the next couple of weeks.”
Since taking office last year, Trump has placed public pressure on Powell to lower interest rates more quickly, saying that not doing so harms the U.S. economy.
On Jan. 11, Powell issued a statement on the Fed’s website confirming the DOJ probe into renovations and his June 2025 testimony to the Senate Banking Committee.
“I have deep respect for the rule of law and for accountability in our democracy,” Powell said in a statement.
“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.”
His statement added that he believes 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.”
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation,” Powell added.
Later that day, U.S. Attorney for the District of Columbia Jeanine Pirro said in a social media post that the investigation into the Fed chair stemmed from his failure to respond to their questions.
Pirro also said that Powell was not indicted for anything, adding that they want cooperation from him.
