On Jan. 14 local time, CCTV reporters learned that U.S. President Donald Trump stated he currently has no plans to dismiss Federal Reserve Chair Jerome Powell, despite the Justice Department's ongoing criminal investigation into Powell. However, Trump also noted that it is still too early to determine what final actions may be taken.
When asked whether he would attempt to remove Powell from his position, Trump replied with no such plans. When further questioned about whether the criminal investigation provided grounds for dismissing Powell, Trump added that they are in a wait-and-see situation with him and will decide what to do.
Trump also indicated his preference for nominating former Federal Reserve Board of Governors Kevin Warsh or White House National Economic Council Director Kevin Hassett as potential successors to Powell. At the same time, Trump ruled out U.S. Treasury Secretary Scott Bessent as a candidate for the position.
Powell's term as Federal Reserve Chair is set to end in May 2026, but his term as a Federal Reserve Board governor extends until 2028. On Jan. 11, sources familiar with the matter revealed that the U.S. Attorney's Office for the District of Columbia had launched a criminal investigation into the renovation project at the Federal Reserve's Washington headquarters and whether Powell perjured himself before Congress regarding the project. Powell later confirmed that the Justice Department had issued a subpoena to the Federal Reserve and threatened criminal charges. Powell described the move as an "excuse," emphasizing that the administration aimed to exert more pressure on him over interest rate cuts.
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