Trump renews calls for former Federal Reserve chief Jerome Powell's resignation

The Federal Reserve's internal auditor, while investigating the controversial cost overruns in the renovation of the Federal Reserve Building, found no evidence of unethical or administrative misconduct related to the project, according to a report released on Wednesday. General Inspector William English stated there was no reason to involve law enforcement authorities.

However, the report did uncover significant deficiencies in the project oversight. The cost explosion in the renovation of the historic Fed building in Washington, D.C., had prompted President Donald Trump to attack then-Fed Chairman Jerome Powell and attempt to remove him from office to gain more influence over monetary policy.

The total project costs now stand at about $2.4 billion, exceeding the original plan by roughly $1 billion. Critics from the White House had previously complained about design elements such as marble or water features that did not significantly contribute to the cost overrun, according to the auditors. New Fed Chair Kevin Warsh stated he would implement recommendations for project management and hire an independent accounting firm to verify the accuracy of all expenditures.

The ongoing conflict between Trump and Powell, which began in 2018, saw Trump repeatedly demanding rate cuts. The dispute intensified in January 2026 when the Justice Department served subpoenas to the Fed. Powell alleged government intimidation, and a federal judge dismissed the subpoenas in March, ruling they were only a pretext to pressure him into rate cuts or resignation.

Powell subsequently stepped down as Fed Chair but remains a non-voting member of the board until the investigation is complete. The attorney general's office is currently reviewing the report.