Fed Chair Faces Call for Exit Amid Political Pressure

"Senator Bill Hagerty, a member of the Senate Banking Committee, has urged Federal Reserve Chairman Jerome Powell to step down. The suggestion comes after a series of criticisms from President Donald Trump and a Justice Department investigation into the Fed’s $2. 5 billion headquarters renovation. \n\nHagerty told CNBC’s “Squawk Box” that if he were in Powell’s position, it might be time to leave. He said the environment would likely become unpleasant for those who remain. \n\nPowell’s term as chair ends on May 15, but he will stay on the Fed’s governing board until January 2028. He plans to remain until the DOJ probe into his testimony about the renovation is finished. \n\nTrump has nominated former Fed official Kevin Warsh to replace Powell, but confirmation stalls because Republican Senator Thom Tillis opposes the DOJ investigation.Hagerty believes Warsh is ready to take over and that a new chairman should be installed quickly. \n\nTrump has publicly threatened to fire Powell if he does not resign at the end of his term. He also described the DOJ investigation as “probably corrupt” and “really incompetent. ” Powell denies wrongdoing, claiming he has faced pressure to lower interest rates. \n\nThe conflict could lead to an unusual transition at the world’s most powerful central bank, which has usually seen smooth handovers. If Warsh is confirmed, he may find Powell still on the board—an arrangement that has not happened since the late 1940s. \n\nHagerty said that, like many companies, a new leader should receive a clear runway to move forward. Whether Powell chooses to step down remains uncertain. "