Trump: No Plan to Fire Powell, Discussion of More Rate Hikes 'Premature'

Jan 15 (U.S. local time Wednesday) — U.S. President Trump said Wednesday that while the Department of Justice (DOJ) is conducting a criminal investigation into Federal Reserve Chair Jerome Powell, he currently has no plans to fire Powell. However, he noted it is “too early” to determine his final course of action. In an interview with Reuters, when asked if he would attempt to remove Powell from office, Trump stated: “I have no such plan at the moment.” When pressed if the investigation gives him reason to do so, he added: “Right now, we’re in a wait-and-see mode with him. We’ll decide what to do, but I can’t discuss it in depth right now—it’s too early, too premature.” Powell’s term as Fed chair ends in May, but he will remain on the Federal Reserve Board in Washington until 2028. Trump hinted he is leaning toward nominating former Fed Governor Kevin Warsh or National Economic Council (NEC) Director Kevin Hassett to replace Powell. He also said U.S. Treasury Secretary Scott Bessent is no longer a candidate, as “he wants to stay in his current job.” (FX678)