Trump says Powell’s handling of Fed renovation “sort of is” a fireable offense

President Donald Trump criticized Federal Reserve Chair Jerome Powell over his handling of the central bank’s $2.5 billion headquarters renovation, saying “it sort of is” a fireable offense.

“I think he’s terrible,” Trump told reporters in Pennsylvania on Tuesday. “But the one thing I didn’t see him as a guy that needed a palace to live in.”

“The one thing I wouldn’t have guessed is he would be spending two and a half billion dollars to build a little extension onto the Fed,” Trump added. When asked if the project was a fireable offense, Trump replied, “I think it sort of is, because if you look at his testimony… he’s not talking about the problem. It’s a big problem.”

The project, which started in 2021, was initially budgeted at $1.9 billion but has since risen to $2.5 billion due to unexpected problems, including soil contamination, asbestos, and other structural issues, according to CNN. The Federal Reserve says the upgrades will allow it to consolidate staff and cut costs over time.

Trump has frequently expressed frustration with Powell, whom he appointed in 2018 to succeed Janet Yellen. In past comments, Trump has blamed him for not lowering interest rates quickly enough.

Powell has previously said that the tariffs announced by Trump have added uncertainty to the economic outlook and are a key reason the Fed has held off on cutting interest rates, citing potential inflation risks.