Thune urges Trump administration to 'wrap up' investigation of Fed chair

Senate Majority Leader John Thune (R-S.D.) on Wednesday urged the Trump administration to "wrap up" its investigation of Federal Reserve Chairman Jerome Powell, arguing that it's in "everybody's best interest" to end the Justice Department's controversial criminal probe.

"I think it's in everybody's best interest to wrap up the investigation. I've said that before, it would be better if it winds down," Thune said.

Thune noted that President Trump has nominated Kevin Warsh to replace Powell, whose term as chairman expires on May 15. Warsh's confirmation hearing is set for next week, but the investigation threatens to stall his nomination.

Sen. Thom Tillis (R-N.C.), a member of the Senate Banking Committee, has vowed to keep Warsh's nomination bottled up in the committee until the Justice Department either ends its investigation of Powell and the Fed or reveals credible evidence of criminal wrongdoing or financial mismanagement at the central bank.

The Justice Department is investigating Powell, with whom Trump has long feuded over interest rates, over the renovation of the Federal Reserve's headquarters in Washington and whether he lied to Congress when he testified before the Senate Banking Committee in June.

Prosecutors from U.S. attorney's office for the District of Columbia made a surprise visit to the Federal Reserve building on Tuesday in an effort to tour the construction site.

Thune warned that the Trump administration will have to deal with Tillis to get Warsh's nomination through the Senate and urged it to move on.

"I think at some point they're going to have to deal with the committee and they're going to have to deal with Tillis," he said.

"A new man is nominated, very qualified," he said of Warsh. "We're excited obviously to get the opportunity to confirm him.

"It would be great if we could wind up prior business before that happens," he added.

Trump said he has communicated his views to the White House.

Powell's term as chairman expires next month but his term as a member of the Fed's board of governors runs until January of 2028.

Trump on Wednesday threatened to fire Powell and argued the Justice Department's investigation into the Fed renovation should be allowed to move forward.

Trump told Fox Business in an interview that if Powell doesn't leave his post, "then I'll have to fire him."

"If he's not leaving on time — I've held back firing him. I've wanted to fire him, but I hate to be controversial. I want to be uncontroversial," the president said.

Trump argued the criminal investigation needs to continue to expose possible corruption and incompetence.

"What they've done to that so it is probably corrupt, but what it really is is incompetent, and we have to show the incompetence of that," he said.