Trump Considers Firing Powell Over $2.5 Billion Fed Renovation

President Trump has expressed his consideration to dismiss Federal Reserve Chairman Jerome Powell, citing concerns over the escalating renovation costs of the Federal Reserve's headquarters in Washington, D.C. White House Economic Advisor Kevin Hassett confirmed that Trump has the authority to remove Powell if there is substantial evidence of mismanagement. The renovation project, initially estimated at $2.5 billion, has drawn criticism from administration officials who question the necessity and cost of the upgrades.

White House Budget Office Director Russell Vought has accused Powell of misrepresenting facts related to the renovation expenses, further intensifying the scrutiny. Vought described the renovation work as "horrifying from a cost perspective" and compared it to France’s extravagant Palace of Versailles. Powell, however, has defended the project, stating that some elements approved by the National Capital Planning Commission in 2021 have been altered or mischaracterized in recent reports. He clarified that there is no VIP dining room, new marble, water features, beehives, or roof terrace gardens as reported, and that some segments of new marble were needed only to replace broken pieces.

Despite the controversy, Trump has reiterated that he does not plan to fire Powell. However, he has continued to criticize Powell for not adjusting interest rates, stating that Powell is "doing a terrible job" and that the Fed chair is "costing our country a lot of money." Trump has also expressed frustration that the United States is not the number one economy in the world, blaming Powell for this perceived failure.

The situation has led to speculation about Powell's future at the Federal Reserve. Some reports suggest that Powell is considering resigning amid the growing pressure. However, Powell has not publicly confirmed these reports. The Supreme Court ruled in May that the Federal Reserve chair is protected from removal without cause, adding another layer of complexity to the situation.

The controversy surrounding Powell's potential removal and the renovation costs has highlighted the ongoing tension between the White House and the Federal Reserve. While Trump has not taken active steps to remove Powell, his public criticism and the administration's probe into the renovation project have raised questions about the future of the Federal Reserve chair. The situation remains fluid, with both sides continuing to engage in a public battle over the direction of the economy and the management of the Federal Reserve.