Trump Demands Powell's Resignation After Fed Renovation Report
Trump Demands Powell's Resignation After Fed Renovation Report
Donald Trump calls for Jerome Powell's immediate resignation from the Fed board following a watchdog report detailing massive cost overruns in the Fed headquarters renovation, despite no criminal findings.
Former President Donald Trump is once again targeting Federal Reserve Chair Jerome Powell, demanding his "forced" resignation from the Fed's Board of Governors. This call comes in the wake of a new watchdog report that uncovered significant cost overruns and management failures in the renovation of the central bank's headquarters in Washington D.C.
The Federal Reserve's inspector general released a report on Wednesday stating that while there were major issues with the renovation project, including costs ballooning by over a billion dollars, there were no grounds to suggest any federal criminal law had been violated. The report details how the project, initially estimated at $1.3 billion in 2020, now carries a board-approved budget of $2.4 billion, with construction costs alone rising by $960 million.
According to the IG's findings, the Fed struggled with design changes and other issues, failing to enforce a guaranteed maximum price for the project. The process also did not effectively escalate rising costs to senior leadership. For example, plumbing and HVAC costs surged by 223%, far exceeding the overall 16% producer price inflation during the renovation period.
Despite the lack of criminal findings, Trump quickly seized on the report. In a Truth Social post, he lambasted Powell, stating,
He can't manage a Building, and he certainly shouldn't be allowed to manage his High Interest Rate Policy (only on 'TRUMP!').
Trump called for Powell's immediate resignation and suggested that if he refuses, he should be sued by the federal government for "corruption or incompetence."
This isn't the first time Trump has criticized Powell over the renovation project or his interest rate policies. During his presidency, Trump waged an unsuccessful campaign to pressure the Fed to cut rates and even launched a criminal investigation into Powell regarding the renovations, which was later dropped.
Jerome Powell, whose term as Fed Chair recently ended, has stated he would remain on the board as a governor until the investigation was "well and truly over, with transparency and finality." He can legally remain on the board through January 2028.
Trump, however, has asked his attorney to "study" the IG report to determine further actions regarding the costly construction project.
