President Donald Trump threatened Wednesday to fire Federal Reserve Chair Jerome Powell if Powell does not step down when his term expires in May, marking the latest escalation in an ongoing dispute between the president and the central bank chief.

In an interview on Fox Business Network, Trump said he was prepared to remove Powell from his position if the Fed chair does not voluntarily exit office when his current term ends next month. The threat represents a significant confrontation between the White House and the traditionally independent Federal Reserve.

Trump also indicated that a Justice Department investigation into Powell would continue. The probe reportedly involves construction and renovation work at the Federal Reserve's headquarters building, though details about the specific focus of the investigation remain limited.

The tension between Trump and Powell has been building over monetary policy and the Fed's independence. Fed chairs typically serve four-year terms, and Powell's current term is set to expire in May.

The Federal Reserve has historically operated with significant independence from political pressure, with its leadership making decisions about interest rates and monetary policy based on economic conditions rather than political considerations. Trump's threat to fire Powell if he doesn't resign voluntarily represents an unusual direct challenge to that traditional independence.