President Donald Trump announced that he has no immediate plans to remove Federal Reserve Chair Jerome Powell, despite an ongoing Justice Department criminal investigation into cost overruns at the central bank's headquarters renovation project. Speaking to Reuters, Trump indicated that while Powell remains in his position for now, the situation continues to evolve with no final decision made.

Trump Weighs Potential Successors

While Powell stays in his role, Trump is actively considering potential successors as the Fed Chair's term approaches its May expiration. The administration is reportedly evaluating several candidates for the position.

Trump suggested the administration remains in a "wait-and-watch mode" regarding Powell's future, emphasizing it is too early to determine any eventual course of action. An announcement on the nomination is expected in the coming weeks.

Justice Department Investigation Details

The criminal probe centers on alleged cost overruns tied to a $2.50 billion renovation of two historic buildings at the Fed's headquarters. Powell has denied any wrongdoing and characterized the investigation as a pretext to pressure him over his refusal to cut interest rates as aggressively as Trump has demanded.

Republican Opposition and Bipartisan Criticism

The investigation has drawn significant criticism from Republican senators, international economic officials, investors, and former U.S. government officials from both parties. Many warn that the probe risks politicizing monetary policy and undermining Federal Reserve independence.

Senator Thom Tillis, a retiring North Carolina Republican and crucial swing vote on the Senate Banking Committee, has threatened to block all Fed nominations until the investigation is resolved. The opposition extends to GOP Senators Lisa Murkowski and Kevin Cramer, who have also criticized the investigation.

Fed Independence Under Scrutiny

Trump has brushed aside concerns about undermining central bank independence, including warnings that it could weaken the U.S. dollar or fuel inflation. He has defended a more direct presidential role in shaping monetary policy, arguing that his business background provides strong economic decision-making capabilities.

Powell's current term as Federal Reserve chair ends in May, though he is entitled to remain on the Fed's Board of Governors until 2028. The standoff represents another test of presidential authority limits, as Trump has also sought to remove other Federal Reserve officials, including Governor Lisa Cook, whose dismissal is subject to a Supreme Court hearing next week.

President Trump escalated his criticism of Federal Reserve Chair Jerome Powell, calling him either "incompetent" or "crooked" following a Justice Department criminal investigation into the central bank's headquarters renovation project. The sharp rebuke came as Trump departed the White House for an economic speech in Detroit on Tuesday.

Trump's Direct Attack on Powell

"He's billions of dollars over budget, so, either he's incompetent or he's crooked," Trump told reporters. "I don't know what he is, but he certainly doesn't do a very good job." The comments represent a dramatic escalation in the administration's attacks on the Federal Reserve and raise fresh concerns about the institution's independence.

Justice Department Investigation Details

The criminal probe centers on the Federal Reserve's headquarters renovation project and Powell's congressional testimony regarding the matter. Powell revealed on Sunday that the Justice Department had served the Fed with grand jury subpoenas related to the investigation, which was first disclosed over the weekend.

Bipartisan Congressional Pushback

The investigation has prompted significant opposition from Republican senators, threatening to complicate Trump's efforts to nominate Powell's successor. Key congressional responses include:

Former Officials Condemn Investigation

Three former Federal Reserve chairs and four former Treasury secretaries from both Republican and Democratic administrations issued a joint statement condemning the investigation. They declared that "it has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success."

Powell's Response and Fed Independence Concerns

Powell characterized the renovation investigation as "pretexts" for broader political pressure regarding interest rates. "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," he stated on Sunday.

Trump had previously told NBC News he didn't know about the subpoenas, appearing to distance himself from the investigation. However, he has consistently criticized Powell and demanded lower interest rates, stating he won't select a new chair unless they commit to rate reductions. Powell's term as chair ends in May, and Trump is currently considering potential successors.