Why Trump wants Jerome Powell to resign from the fed board
By Easton Martin
President Donald Trump demanded the immediate resignation of Jerome Powell from the Federal Reserve Board of Governors, citing findings from an internal watchdog report on cost overruns at the central bank’s Washington headquarters.
The demand follows the release of a report by the Office of Inspector General for the Federal Reserve Board, which investigated the multi-year renovation of the Eccles and 1951 Constitution Avenue buildings. Trump stated that the project has exceeded its budget significantly, projecting that final costs will reach at least $2.5 billion.
Trump directed Attorney General Todd Blanche to review the inspector general’s findings and determine whether the federal government should pursue legal action against Powell. In a public post, Trump stated that Powell should face a lawsuit for either corruption or incompetence if he refuses to step down.
The report identified management deficiencies during the construction project, noting that the Federal Reserve Board did not secure a formal cost estimate from its construction manager until January 2026, three and a half years after construction began. The document further stated that as of July 2026, the board had committed more than $2 billion without establishing a guaranteed maximum price contract, leaving the institution without firm cost controls.
While the inspector general found governance weaknesses and lapses in administrative oversight, the investigation concluded without any criminal referrals or findings of illegal conduct. The Federal Reserve Board agreed to implement seven oversight recommendations detailed in the review.
Powell’s four-year term as Federal Reserve Chairman concluded earlier this year, but he continues to serve on the central bank’s Board of Governors. Under the Federal Reserve Act, a president may remove a governor before the end of their 14-year term only “for cause,” a legal standard historically interpreted as gross misconduct or neglect of statutory duties.
