Trump demands Powell’s exit over Fed audit that found no grounds for criminal referral

President Donald Trump demanded Jerome Powell’s resignation from the Federal Reserve’s board in a Truth Social post on 30 September 2026 and called for the US government to sue him for “corruption or incompetence” if he did not resign. Trump cited an inspector general’s audit of the Fed’s Washington headquarters renovation and said he had asked Attorney General Todd Blanche to review it. The audit documents serious management failures, but found no reasonable grounds for a criminal referral and no policy breaches warranting an administrative misconduct finding. [1] [2]

Trump accurately quoted the audit’s criticism of the project’s cost controls. The Fed did not obtain a project-wide estimate from its construction manager until January 2026, more than three years after work began and after it had awarded over $2 billion in construction work. A guaranteed maximum price had still not been agreed when the audit was issued. The project budget rose from $1.317 billion in February 2020 to $2.381 billion in December 2024 — an increase of about 81%. [2]

The watchdog attributed the rising costs to a combination of inflation, limited subcontractor bidding, design changes and site conditions. It also identified management decisions that could have mitigated some of those pressures. Project dashboards repeatedly showed work as “on track” against cost and schedule targets that had been revised upwards. Higher costs led the Fed to cancel a separate planned renovation of its New York Avenue building. [2] [3]

Trump said the report put the final cost at “at least” $2.5 billion. Its figures instead include a $2.381 billion project budget and a $2.455 billion broader capital budget; the final cost remains unsettled. Trump predicted a cost of $3.5 billion to $4 billion. He also said he could have carried out a better renovation for $25 million. The work covers two historic buildings and includes expansion, hazardous-material removal and replacement of major building systems. The audit listed December 2027 as the planned end of construction. [1] [2]

Fed facilities staff managed day-to-day work, while the board approved budgets. Powell’s personal role in the disputed decisions remains unclear. The evaluation began in July 2025 following a request from Powell. In a separate investigation concerning his testimony about the renovation, a judge quashed subpoenas in March 2026, finding their dominant, if not sole, purpose was to pressure Powell to yield to Trump or resign. That investigation closed in April; the ruling concerned those earlier subpoenas, not Trump’s latest post. [2] [5]

Powell ceased to be Fed chair in May but remained a governor. His governor’s term runs to January 2028, and his departure would open a seat for a presidential nominee, subject to Senate confirmation. [6] [9] Trump also linked his resignation demand to a complaint about interest rates. The Fed’s 16 September rate increase was approved unanimously by its monetary-policy committee, which cited elevated inflation. [1] [7]