President Donald Trump threatened on Wednesday to fire Federal Reserve Chair Jerome Powell if Powell does not resign from the central bank's Board of Governors after his term as chair ends on May 15.

Trump made the remarks during a Fox Business interview, doubling down on a Justice Department criminal investigation into Powell's handling of a $2.5 billion renovation project at the Fed's Washington headquarters. The project has exceeded its budget by nearly 80 percent, prompting scrutiny from U.S. Attorney Jeanine Pirro's office. "If he's not leaving on time - I've held back firing him, I've wanted to fire him... he will be fired," Trump said. He added that the probe covers not only the renovations but also Powell's "incompetence."

Powell's four-year term as chair expires next month, but his appointment as a Fed governor extends until January 2028. Federal law allows him to serve temporarily as chair until a successor is confirmed by the Senate. Powell has stated he has "no intention of leaving the board" until the investigation concludes "with transparency and finality." He described the probe as a pretext to pressure the Fed into cutting interest rates.

Trump nominated former Fed Governor Kevin Warsh to succeed Powell, with a Senate Banking Committee hearing scheduled for April 21. The investigation has delayed Warsh's confirmation, as Republican Senator Thom Tillis vowed to block it until the probe ends, calling it a "frivolous assault" on Fed independence. Treasury Secretary Scott Bessent expressed urgency for Warsh's installation, while Senate Banking Committee Chair Tim Scott predicted the investigation would wrap up soon.

The standoff reflects long-standing tensions. Trump appointed Powell as chair in 2018 but later criticized him for keeping interest rates too high amid persistent inflation above the Fed's 2 percent target. Trump has pushed for rate cuts to boost economic growth. The administration has pursued other moves to reshape the seven-member Fed board, including an attempt to remove Governor Lisa Cook, a case now before the U.S. Supreme Court, which is examining limits on presidential removal power over Fed officials.

Prosecutors visited the Fed headquarters construction site unannounced on Tuesday but were turned away. A federal judge previously quashed grand jury subpoenas, citing political motivations, though Pirro plans to appeal. Trump indicated no plans to drop the investigation.

Fed officials are protected by statute from removal except for cause, complicating any firing attempt. Past threats by Trump against Powell have rattled markets, but no immediate reaction was reported Wednesday afternoon.