Updated
Updated · POLITICO · Oct 1
Trump Demands Powell Resign Over Fed Renovation Costs as IG Clears Him of Misconduct
Updated
Updated · POLITICO · Oct 1

Trump Demands Powell Resign Over Fed Renovation Costs as IG Clears Him of Misconduct

3 articles · Updated · POLITICO · Oct 1

Summary

  • Trump said Jerome Powell should resign "immediately" or face a U.S. lawsuit over Federal Reserve renovation overruns, even after the Fed inspector general found no criminal or administrative misconduct by Powell.
  • Wednesday’s watchdog report said the headquarters project was poorly managed but did not implicate Powell, undercutting a potential basis for Trump to remove the former Fed chair from the Board of Governors.
  • People around Trump said he still wants Powell out, though one person close to the White House said courts are unlikely to allow a firing attempt.
  • Any move against Powell would reopen a fight over Fed independence, with bond markets already pushing long-term Treasury yields to more than two-decade highs and Senate confirmation politics complicating any replacement.

Insights

Will unprecedented legal threats over a construction budget redefine the limits of executive power against independent financial institutions?