Trump threatens to fire Powell if the Fed Chair remains with central bank after his term ends
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Federal Reserve Chairman Jerome Powell, right, and President Donald Trump look over a document of cost figures during a visit to the Federal Reserve, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson, File) WASHINGTON (AP) — Federal prosecutors made an unannounced visit this week to a construction site at Federal Reserve headquarters that is the focus of an investigation into a $2.5 billion renovation project, according to two people familiar with the visit.
AI Summary
Main Idea: Trump is threatening to fire Jerome Powell if Powell stays on the Federal Reserve board after his term as chair ends, as a Justice Department probe into Fed renovation costs adds pressure.
Key Points:
- Federal prosecutors made an unannounced visit to the Fed headquarters renovation site as part of an investigation into a $2.5 billion project with cost overruns.
- The Trump administration is pushing the probe even though a federal judge said the inquiry seemed to be a pretext.
- Powell says he will stay in place until the investigation is resolved, which could block Trump from naming a new Fed board member.
- Trump says he may fire Powell if he remains on the board, while lawmakers say there may not be a clear path to confirm Trump’s nominee quickly.
Impact on the People
Negative Impact
Trump’s pressure on Powell could shake trust in the Fed and unsettle interest rates, which may affect mortgages, loans, savings, and markets for households and small businesses.
Positive Impact
No clear positive impact identified.
How did each entity affect people?
Rate how each entity in this article affected the American people.
- Primary:Federal Reservegovernment agency or body
- Primary:Governor Jerome Powellperson
Candidate Entities12 candidates · 5 weighted vote min · 70% decision
- Federal Reservegovernment agency or bodyPrimaryEvaluated
Central institution in the story; its headquarters renovation and Powell’s role are the core subject.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Governor Jerome PowellpersonPrimaryEvaluated
Federal Reserve chair at the center of the story; his possible departure or stay is the key issue.
Include 0 (0%)Ignore 0 (0%)5 to threshold - President Donald TrumppersonPrimaryAI selected
Central figure in the headline and article; he threatens to fire Jerome Powell and drives the main conflict.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Department of Justicegovernment agency or bodyMajorAI selected
Its prosecutors are described as visiting the Fed site and continuing the investigation.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Kevin WarshpersonMajorAI selected
Trump’s nominee to replace Powell and a major part of the confirmation and succession fight.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Senate Banking Committeegovernment agency or bodyMajorAI selected
Central legislative body in the confirmation process and the political standoff over Warsh’s nomination.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Senator Thom TillispersonMajorAI selected
Key Senate Banking Committee member whose opposition is central to the confirmation blockage.
Include 0 (0%)Ignore 0 (0%)5 to threshold
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