Trump Renews Calls for Jerome Powell's Resignation Following Federal Reserve Watchdog Report

President Donald Trump has renewed his calls for former Federal Reserve chief Jerome Powell to resign following the release of an internal watchdog report detailing extensive management deficiencies in a major Washington building renovation. The report, issued on Wednesday by the Federal Reserve's Inspector General, concluded that a roughly $1 billion cost overrun on the central bank's historic National Mall properties suffered from lax oversight and project mismanagement.

However, the inspector general's evaluation explicitly noted that investigators found no reasonable grounds for a criminal referral or evidence of administrative misconduct tied to the soaring construction costs. The renovation project's overall price tag has climbed to approximately $2.4 billion, drawing intense scrutiny from the White House amid a long-running policy feud between Trump and central bank leadership over monetary policy and interest rates.

Trump seized upon the findings to reiterate demands for Powell's departure from the Fed's Board of Governors. Writing on social media, the president asserted that Powell should either resign or face a federal lawsuit for corruption or incompetence, adding that he directed Attorney General Todd Blanche to review the watchdog document and determine next steps. Powell, who led the central bank through most of the construction period, declined to comment on the report.

The inspector general's 120-page document highlighted multiple operational shortfalls, including a failure by Fed project managers to enforce a guaranteed maximum price contract. This allowed subcontracts and expenses to continually escalate, with specific categories such as plumbing and air conditioning tripling from initial estimates to reach $346 million. At the same time, the watchdog stated that design elements frequently criticized by administration allies, including marble finishes, water features, and a garden terrace, did not materially contribute to the budget overruns.

Current Federal Reserve Chairman Kevin Warsh, who succeeded Powell in May, stated that the central bank would implement the report's management recommendations and hire an independent auditor to verify the accuracy and compliance of all historical project costs. Meanwhile, Federal Vice Chair Philip Jefferson, who oversees the Committee on Board Affairs and administrative project supervision, did not immediately issue a public statement.

The watchdog report immediately triggered sharp partisan divisions in Congress. Republican Senator Tim Scott, who chairs the Senate Banking Committee, characterized the cost overruns as egregious and pledged rigorous congressional oversight to ensure the central bank remains accountable for managing public resources prudently. Conversely, Senator Elizabeth Warren, the committee's ranking Democrat, argued that the findings provided no justification to restart what she described as a political pressure campaign against Powell.

The investigation marks the latest development in an adversarial relationship that intensified during Trump's second term. The White House previously utilized the spiralling renovation costs as a focal point to pressure Powell over interest rate policies. Tensions peaked earlier when federal prosecutors issued subpoenas to the Fed board regarding the project and Powell's congressional testimony, an effort a federal judge later quashed after concluding the subpoenas served as a pretext for political pressure. Although Kevin Warsh assumed the chairmanship earlier in the year, Powell has maintained his position as a member of the Fed's Board of Governors pending complete resolution of the inquiries, stating previously that he intends to remain until the investigations reach absolute finality.