‘Jerome should be forced to resign’: Trump wants Powell out despite Fed watchdog vetting him | What was the charge? | Today’s news
US President Donald Trump has called on former Federal Reserve Chairman Jerome Powell to resign from the Central Bank’s Board of Governors over a renovation dispute at the Fed’s Washington headquarters. And this despite the fact that the internal watchdog found no evidence of a crime.
The Fed’s Office of Inspector General (OIG) said in a report released Wednesday that it found no “reasonable grounds to believe that a violation of federal criminal law has occurred.” The report also identified no “administrative misconduct” in the $2.4 billion renovation project.
So, what exactly was the charge against Powell?
The controversy centers on the cost and management of the Fed headquarters renovation. The project was initially estimated at around $1.3 billion in 2020, but later increased to $2.4 billion.
The central bank said several management failures contributed to the cost increase. It noted that the Fed’s board did not respond to problems identified during the earlier project and did not implement the necessary measures.
Other problems highlighted by the OIG included substantial cost overruns due to a lack of bids for certain work and internal management that the report said was not equipped to operate a project of this scale and complexity.
Other factors cited by the OIG were design changes, site conditions and inflation. The feds said the renovation costs were largely driven by problems associated with building — especially underground — in what was once a marsh near the Tidal Basin along the Potomac River.
The OIG also concluded that the Fed’s internal management structure is not equipped to manage a project of this size and complexity.
“At no point in our review did we find reasonable grounds to believe that a violation of federal criminal law has occurred that would require a referral to the U.S. Attorney General under the Inspector General Act,” the Fed’s inspector general’s office said.
Still, Trump blamed Powell directly
“It’s Jerome Powell’s fault and he should be forced to resign immediately!” Trump posted on social media. He added that if Powell does not resign, he should be sued by the US government for “either corruption or incompetence”.
Trump also said he had asked Attorney General Todd Blanche to review the inspector general’s report and decide what action should be taken.
What did Fed Chairman Kevin Warsh say?
Current Fed Chairman Kevin Warsh said the central bank would implement watchdog recommendations.
“There are important lessons to be learned, and those lessons, combined with your findings and GSA’s recommendations, will be of lasting value to our successors on the Board of Governors,” Warsh wrote in a letter to Michael Horowitz, the IG appointed by Powell in June 2025.
The dispute over the renovation has become part of a broader clash between Trump and Powell. During Powell’s tenure as Fed chairman, Trump repeatedly criticized him over interest rate policy and also used the headquarters project to attack the central bank chief.
Powell’s term as chairman ended in May, but he remained on the Fed’s Board of Governors. His term as governor runs until January 2028.
