Former President Donald Trump issued a stark warning that he will remove Federal Reserve Chair Jerome Powell if Powell refuses to step down when his term expires in May, declaring the central bank leader 'overall incompetent' in a Fox Business interview. The threat comes as the Justice Department investigates Powell and the Fed's headquarters overhaul, while Trump's chosen replacement—former Fed Governor Kevin Warsh—awaits Senate confirmation amid intense scrutiny of the central bank's operations and Powell's recent testimony.

Trump backs Warsh and attacks Powell as confirmation questions grow

In the interview, Trump said, “I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial, you know?” He then returned to the renovation of the Fed’s buildings. Trump said, “[This is a] building that I would have done for $25 million that’s going to cost maybe $4 billion.” He added, “Don’t you think we have to find out what happened there?”

The investigation has also spilled into politics around Warsh’s nomination. Outgoing Republican Senator Thom Tillis of North Carolina said he would “oppose the confirmation of any Federal Reserve nominee, including for the position of chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.”

Asked whether Warsh would still be confirmed, Trump said, “We’re going to have to find out [if he will be confirmed]. He might not, but that’s why Thom Tillis is no longer a senator,” referring to Tillis’ decision not to seek reelection in 2026.

Trump then called Tillis a “good man” and said he did not think Tillis would intentionally hurt Warsh’s chances.

On Powell, Trump said, “He’s on his way out… and I think he doesn’t want the legacy of stopping a great person who could be great…. I know he said what he said, and maybe it’s true, in which case I’ll have to live with it…”

Pirro sends prosecutors to the Fed site as the legal fight gets louder

On Tuesday, prosecutors from U.S. Attorney Jeanine Pirro’s office arrived without notice at the construction site for the Fed’s headquarters renovation, according to a person familiar with the matter and a letter allegedly reviewed by The Wall Street Journal.

After speaking with workers, two deputies from Pirro’s office were told they could not enter without preclearance. They were then given contact details for the Fed’s legal team.

The case centers on the Fed’s $2.5 billion renovation of two historic office buildings and a few minutes of Powell’s testimony to Congress. An outside lawyer for the Fed, Robert Hur, objected to the visit in a letter to Pirro’s office. Hur pointed to a ruling last month by U.S. District Judge James Boasberg, who threw out two subpoenas and said the investigation appeared designed to “harass and pressure” Powell to either cut interest rates or step down.

Hur wrote, “Should you wish to challenge that finding, the courts provide an avenue for you; it is not appropriate for you to try to circumvent it.” He added, “I ask that you commit not to seek to communicate with my client outside the presence of counsel.” Hur also said prosecutors Carlton Davis and Steven Vandervelden appeared “without prior notice,” asked for a tour, and said they wanted to inspect the progress of the renovation.

That clash came the same day the confirmation process moved forward for Warsh. The Senate Banking Committee said Tuesday that it would hold his confirmation hearing next week, on April 21.

In a separate Fox Business interview, committee chairman Tim Scott predicted Pirro’s investigation would end within weeks and clear the way for Warsh. Pressed on whether he knew that, Scott said, “I don’t have any evidence of that, no.”

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