The Federal Reserve Board of Governors declined to comment on the record.
Although the Federal Reserve's chair and board of governors are nominated by the president, the central bank largely operates independently. No president has tried to fire the chair of the central bank since its founding in 1913. A Supreme Court decision in 1935 found that then-President Franklin D. Roosevelt could not fire the commissioner of the Federal Trade Commission, a similar independent organization, based on policy alone. However, the Trump administration has successfully challenged this ruling in the past, with the Supreme Court allowing the president to temporarily fire members of the National Labor Relations Board and the Merit Systems Protection Board. Powell has previously said he would not resign before his term ended if Trump asked him to.
Although Bessent said a search was underway, it's not clear who Trump would tap to serve as chair. Kevin Warsh, a member of the Fed's Board of Governors, is widely seen as a frontrunner. Other sources told Bloomberg on Wednesday that Hassett is also still in the running. Other names that have been floated include David Malpass, the former president of the World Bank Group, as well as Bessent himself.
Russell Vought, the director of the Office of Budget and Management, also accused Powell of presiding over an "ostentatious overhaul" of the Fed's headquarters that is $700 million over budget, which he said has expanded up to $2.5 billion in total cost. "These renovations include terrace rooftop gardens, water features, VIP elevators, and premium marble. The cost per square foot is $1,923 -- double the cost for renovating an ordinary historic federal building," Vought said in a statement. Trump brought up the renovation again speaking with reporters on Wednesday. "It's possible there's fraud involved in the $2.5, $2.7 billion renovation," Trump said. "There could be something to that, but I think he's not doing a good job."
Powell has served on the Fed's Board of Governors since 2012. Trump nominated him as chair in 2017, but quickly soured on him after Powell decided to raise interest rates in 2018. Powell was nominated for a second four-year term by former President Joe Biden in 2021. Speaking to reporters Wednesday, Trump doubled down on his past criticism and blamed Biden for Powell remaining in the role. "He's a terrible Fed chair," Trump said. "I was surprised he was appointed. I was surprised, frankly, that Biden put him in and extended him." Though Powell's term as Fed chair ends next year, his term as a member of the board of governors does not end until January 2028.