President Donald Trump has threatened to fire Jerome Powell if he doesn't step down from the Federal Reserve entirely.
Trump wants Powell to vacate the Fed Chair post, as well as his seat on the Board of Governors.
Powell's term as Fed chief ends on May 15, while his term on the board of governors extends to 2028.
Initially, Powell indicated he would leave the central bank once a new chair was selected. But he recently said he would not leave his post until a criminal investigation of him led by U.S. Attorney Jeanine Pirro is complete. Powell has also said he hasn't decided whether to remain as governor on the board until that term ends.
The ongoing Justice Department probe has complicated Trump's efforts to replace Powell.
The Federal Reserve was subpoenaed over Powell's Senate testimony last June regarding the central bank’s $2.5 billion building renovation project. A U.S. judge upheld subpoenas issued as part of the investigation, likely setting up an appeal that could further delay Trump's move to install a new Fed chief.
Both Trump and Pirro have said the building investigation needs to be pursued regardless of how it affects the confirmation process of Kevin Warsh, Trump's pick to replace Powell.
The president has had a long history of criticizing Powell, especially over tax rate policy. Warsh, on the other hand, has harshly criticized the Federal Reserve’s policies in recent years, including its low interest rate policies coming out of the pandemic, which he said contributed to the country's largest inflation spike in four decades, in 2021 and 2022.
Sen. Thom Tillis (R-N.C.), a member of the Senate Banking Committee, said he will oppose confirming Warsh until the Justice Department's probe is resolved.
Warsh needs a majority approval vote in the Senate to be confirmed as Federal Reserve chair.