US President Donald Trump has threatened to fire Federal Reserve Chair Jerome Powell if he does not step aside at the end of his term in May. The two have been embroiled in a bitter spat over Powell's reluctance to cut the central bank's interest rate, despite Trump's repeated calls. Powell's term expires on 15 May, but he is planning to remain in post until his successor, Kevin Warsh, is confirmed by the Senate. Trump remarked, Then I'll have to fire him, during an interview. He added, I've held back firing him. I've wanted to fire him, but I hate to be controversial.

Tillis, a Republican senator on the committee overseeing nominations, has threatened to block Warsh's confirmation unless an ongoing criminal investigation into Powell is dropped. Trump hopes this opposition will wane, stating, He is an American… he knows what to do, but he is not ready to let the investigation into Powell pass. Trump previously accused Powell of spending excessively on the Federal Reserve renovation, and he has labeled him a knucklehead, claiming he is doing a lousy job due to ignored calls for rate cuts. If Trump follows through with firing Powell, it would break a long-standing precedent, marking the first time a Federal Reserve chair has been dismissed.