On Tuesday, President Trump hinted that Federal Reserve Chairman Jerome Powell’s approach to the renovation of the central bank’s headquarters might constitute a crime, further escalating the criticisms aimed at Powell.
When asked by reporters in Pennsylvania if he would dismiss Powell, Trump expressed strong disapproval, stating, “I think he’s terrible. I think he’s completely stiff.” He added he felt the need for a different leadership style at the “palace.”
Regarding the Fed’s $2.5 billion renovation expenditure in Washington, D.C., Trump remarked, “I think it’s kind of a crime.”
For several months, Trump has been frustrated with Powell due to the Fed’s refusal to lower interest rates, which he attributes to the uncertainty stemming from the president’s aggressive tariff policies.
While Trump has previously suggested he might fire Powell, Powell’s term is set to run until May 2026.
However, recent discussions among top White House officials have shifted towards scrutinizing the costs of the Fed’s renovation, prompting speculation that Trump and his associates might attempt to oust Powell under this pretext before his term expires next year.
Russell Vert, director of the Office of Business and Budget, wrote to Powell last week, suggesting that Powell had misled Congress and pointing out contradictions in his statements regarding the renovations.
Recently, Trump appointed Deputy Director James Blair to the National Capital Planning Commission, tasking him with examining whether Powell broke any laws concerning the renovation project.
This week, Powell asked central bank inspectors to review the renovations, as sources confirmed.
In an effort to alleviate some concerns about the project, the Fed posted a Q&A on its website, stating that they plan to reduce costs gradually by integrating more of their operations.
The Fed cited “various factors” for the rising costs, such as soil contamination and unexpected issues like asbestos, which were more prevalent than anticipated, leading to discrepancies between initial estimates and actual expenses.
