FX.co ★ Renovation costing billions heightens clash between Trump and Powell

US President Donald Trump has demanded that former Federal Reserve Chair Jerome Powell leave the Fed’s Board of Governors. The trigger was an inspector general report revealing massive cost overruns on the central bank’s renovation in Washington. Project spending reached $2.4 billion — $1 billion over budget. Trump has instructed the attorney general to review the report and decide on further action related to the construction.

Auditors found no criminal or administrative violations but documented serious management failures. The Fed Board approved large expenditures without an agreed cap or a firm contractor estimate. Donald Trump claimed the final bill could top $3.5 billion and boasted he could have completed the renovation for $25 million without harming the buildings’ historic character.

The demand for Powell’s stepping down is the latest front in the White House’s pressure campaign against the central bank. Jerome Powell remained on the Fed’s governing board even after being replaced as chair, drawing sustained presidential criticism. Congress called the attacks an attempt to undermine the Fed’s independence, citing the absence of legal breaches. Nevertheless, Trump’s administration intends to use the construction scandal as leverage to force Powell’s resignation.