Trump says he has no plans to fire Jerome Powell — after reported ‘joke' offer of Fed chair job to Jamie Dimon

• Trump is considering replacements for Powell including 'two Kevins' (likely Hassett and Warsh), with an announcement expected in the next couple of weeks; Treasury Secretary Scott Bessent has been ruled out
• Powell faces a DOJ probe over Fed headquarters renovations that Trump claims cost $4 billion, about $1.5 billion over budget; Powell called the investigation politically motivated
• Bipartisan lawmakers and foreign central bank leaders have criticized the investigation, warning about threats to Fed independence, but Trump responded 'I don't care' to concerns from critics and lawmakers who must confirm his Fed pick

Summary: Trump Denies Plans to Fire Powell Amid Fed Chair Speculation

President Trump stated Wednesday he has no plans to fire Federal Reserve Chairman Jerome Powell, despite an ongoing Justice Department criminal investigation into the central banker. Trump acknowledged being in a "holding pattern" regarding Powell's future but said it's "too soon" to make decisions.

Key Developments:

• Powell's term as Fed chair ends in May, though he could remain on the Fed board through 2028
• Trump reportedly offered the Fed chair position to JPMorgan Chase CEO Jamie Dimon months earlier, which Dimon interpreted as a "joke"
• Trump ruled out Treasury Secretary Scott Bessent for the role, mentioning "the two Kevins" as strong candidates
• Other potential candidates include BlackRock exec Rick Rieder and Fed Governor Christopher Waller

The Investigation:

The DOJ probe centers on the Fed's headquarters renovation, which Trump claims cost $4 billion — approximately $1.5 billion over budget. Powell called the investigation "politically motivated" and an attack on Fed independence.

Market Implications:

The controversy threatens Federal Reserve independence at a critical time. The Fed cut rates three times last year, bringing the target range to 3.5%-3.75%, but Trump continues pressing for steeper cuts ahead of midterm elections. Trump stated he believes "a president should have something to say" about Fed decisions.

Foreign central bankers, U.S. lawmakers (including Republican Sen. Thom Tillis), and former officials have criticized the investigation. The White House has also pressured Fed Governor Lisa Cook to resign over unsubstantiated mortgage fraud allegations. Multiple Fed board positions may soon become vacant, potentially allowing Trump to reshape the institution's leadership.