President Donald Trump told Reuters he has no immediate plans to fire Federal Reserve Chair Jerome Powell, even as the Department of Justice probes alleged cost overruns in the Fed's headquarters renovation. Powell has denied any wrongdoing, claiming the investigation serves as political pressure from an administration unhappy with his refusal to cut interest rates. Trump remained noncommittal on whether the probe could justify termination, calling it "too early" to decide his final course of action.

The standoff tests the central bank's long-held independence from White House influence. Powell's term as chair ends in May, though he could remain on the Fed's board until 2028. Trump is already weighing potential successors, naming former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett as leading candidates. He plans to announce his nominee within weeks, a move that could reshape monetary policy leadership.

Republican lawmakers have urged Trump to respect the Fed's autonomy, but the president dismissed their concerns, demanding loyalty instead. His administration's aggressive posture toward Powell raises questions about the future of interest rate decisions and the central bank's credibility. Markets will watch closely for signs of political interference that could destabilize economic policy ahead of key rate-setting meetings.