President Trump has urged former Fed Chair Powell to resign over the $2.4 billion renovation of the Fed’s headquarters, despite an inspector general report finding no criminal wrongdoing. Management failures and rising costs have sparked controversy around the project and its oversight.
US President Donald Trump has called for former Federal Reserve Chair Jerome Powell to resign from the central bank’s Board of Governors over the renovation of the Fed’s Washington headquarters controversy. This is despite the fact that an internal watchdog found no evidence of criminal wrongdoing.
The Fed’s Office of Inspector General (OIG), in a report released Wednesday, said it found no “reasonable grounds to believe that a violation of federal criminal law had occurred.” The report also did not identify any “administrative misconduct” in the $2.4 billion renovation project.
So, what exactly was the allegation against Powell?
The controversy centres on the cost and management of the renovation of the Fed’s headquarters. The project was initially estimated at about $1.3 billion in 2020, but later it rose to $2.4 billion.
The central bank said several management failures contributed to the cost increases. It noted that the Fed’s board had failed to act on problems identified during an earlier project and had not implemented the necessary actions.
Other issues pointed out by the OIG included substantial cost increases due to a lack of bids for some work and internal governance that, according to the report, wasn’t equipped to run a project of this magnitude and complexity.
Design changes, site conditions and inflation were other factors cited by the OIG. The Fed has said the cost of the renovation was largely due to the challenges of building — particularly underground — in what was once a swamp near the Tidal Basin along the Potomac River.
The OIG also concluded that the Fed’s internal governance structure was not equipped to manage a project of this size and complexity.
“At no point during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law had occurred requiring a referral to the US Attorney General in accordance with the Inspector General Act,” the Fed’s Office of Inspector General said.
Trump nevertheless blamed Powell directly
“This is Jerome Powell’s fault, and he should be forced to resign, IMMEDIATELY!” Trump posted on social media. He added that if Powell did not resign, he should be sued by the US government for “either corruption or incompetence”.
Trump also said he had asked Attorney General Todd Blanche to examine the inspector general’s report and determine what action should be taken.
What did Fed Chair Kevin Warsh say?
Current Fed Chair Kevin Warsh said the central bank would implement the watchdog’s recommendations.
“There are important lessons to be learned, and those lessons, combined with your conclusions and with recommendations from GSA, will have permanent value for our successors on the Board of Governors,” Warsh wrote in a letter to Michael Horowitz, the IG who was appointed to the job by Powell in June 2025.
The renovation controversy has become part of the broader clash between Trump and Powell. During Powell’s tenure as Fed chair, Trump repeatedly criticised him over interest-rate policy and also used the headquarters project to attack the central bank chief.
Powell’s term as chair ended in May, but he remained on the Fed’s Board of Governors. His term as governor runs until January 2028.
About the Author
Sanchari Ghosh
Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect.
She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions.
As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world.
She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad.
Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting.
She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness.
She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance.
Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player.
