President Donald Trump said Wednesday that he is not currently planning to remove Federal Reserve Chair Jerome Powell, even as the Justice Department conducts a criminal investigation involving the central bank leader, adding that it is still too soon to decide what steps he may ultimately take.

Responding to questions from Reuters about whether he intended to dismiss Powell, Trump said, “I don’t have any plan to do that,” signaling no immediate action against the Fed chair.

Pressed on whether the existence of the investigation could justify Powell’s removal, Trump indicated that the situation remains unresolved. “Right now, we’re (in) a little bit of a holding pattern with him, and we’re going to determine what to do. But I can’t get into it. It’s too soon. Too early.”

Trump also pointed to potential successors should a change occur, naming former Federal Reserve Governor Kevin Warsh and National Economic Council Director Kevin Hassett as leading possibilities. He said Treasury Secretary Scott Bessent would not be considered, explaining that Bessent prefers to remain in his current role. “The two Kevins are very good,” Trump said. “You have some other good people too, but I’ll be announcing something over the next couple of weeks.”

The Justice Department investigation centers on cost overruns tied to a $2.5 billion renovation of two historic buildings at the Federal Reserve’s headquarters. The probe was opened recently by the Trump administration.

Powell revealed the investigation earlier this week and has denied any misconduct. He has argued that the investigation is being used as leverage in response to his refusal to comply with Trump’s repeated calls for aggressive interest rate cuts.

Criticism of the investigation has emerged from several prominent Republicans in the Senate, whose approval would be required for any new Fed chair nominee. Their concerns have been echoed by foreign economic officials, investors, and former U.S. government officials from both parties, many of whom have warned that the probe risks injecting politics into monetary policy decisions.

Administration officials, however, have defended the investigation, saying the government is obligated to pursue any credible allegations of wrongdoing.

Trump has repeatedly criticized Powell in public for declining to slash benchmark interest rates as rapidly or as deeply as the president has urged. Powell was originally appointed to lead the Federal Reserve by Trump during his first term.

With November’s midterm congressional elections approaching, surveys show that voters view rising living costs as a major concern, and many give Trump low marks for his handling of the issue.

The president brushed aside objections from critics, including lawmakers whose backing he will need if he nominates a new Fed chair. “I don’t care,” he said. “They should be loyal. That’s what I say.”

He also rejected warnings from economists and financial leaders that undermining the Federal Reserve’s independence could weaken the dollar and fuel inflation. “I don’t care,” he said again.

Over the past year, Trump has repeatedly pushed the boundaries of presidential authority.

In a separate case, Trump has sought to remove Federal Reserve Governor Lisa Cook, who is challenging her dismissal in court. That dispute is scheduled to be argued before the Supreme Court next week.

Defending his involvement in monetary policy debates, Trump said, “A president should have something to say” about Fed policy, adding, “I made a lot of money with business, so I think I have a better understanding of it than Too Late Jerome Powell.”

{Matzav.com}