Trump Demands Powell Resign Amid Renovation Probe Fallout
Former US Federal Reserve chief Jerome Powell has been cleared of any wrongdoing in a probe into a costly renovation project at the Fed's Washington headquarters. The Office of the Inspector General (OIG) found no 'reasonable grounds' to justify criminal charges against Powell.
The investigation centered around a major building renovation project whose cost estimates grew from $1.3 billion in February 2020 to $2.4 billion in December 2024. The OIG's report identified management deficiencies but did not find administrative misconduct during the evaluation.
Powell, who took over as Fed chair during President Donald Trump's first presidency in 2018, was also criticized by Trump for his interest rate policy. Trump had launched an unprecedented assault on the Fed's independence and demanded Powell be 'forced to resign' from the board or face a lawsuit 'at the highest level'. However, Trump's demand came after the Department of Justice dropped a criminal probe into Powell in April.
Democratic Senator Elizabeth Warren said the OIG's report proved that Trump's DOJ had no basis to restart the President's witch hunt against former Fed Chair Jerome Powell. The senator urged Trump to quit trying to fire Fed governors and instead address his economic failures.