President Donald Trump said on Tuesday that Jerome Powell should step down as Federal Reserve chairman if it turns out he misled lawmakers in his testimony to Congress. Speaking at a Cabinet meeting, Trump voiced his approval for a congressional inquiry into Powell’s conduct. Trump has long pressed Powell to cut interest rates and has repeatedly demanded his resignation over the Fed’s monetary policy.
Last week, during a Senate Banking Committee session, Powell rejected suggestions that the Fed had spent excessively on upgrading its D.C. headquarters. He was responding to remarks by Senator Tim Scott, who characterized the renovations as akin to building the “Palace of Versailles.” Powell dismissed those claims outright. “There’s no VIP dining room; there’s no new marble. There are no special elevators,” Powell said. “There are no new water features, there’s no beehives, and there’s no roof terrace gardens.”
Despite Powell’s assurances, the price tag for the headquarters overhaul has already surged by 30% beyond the initial projection of $1.9 billion, according to a report by the New York Post.
Trump, using his Truth Social platform last week, reiterated his call for Powell to resign and shared a link to a Bloomberg article titled, “Fed Chair Should Be Investigated by Congress, FHSA Head Says.”
Powell was originally appointed to the Fed chairmanship by Trump. His current term is scheduled to conclude in May 2026.
Trump has not held back in his criticism of Powell and the Federal Reserve. “They have one of the easiest, yet most prestigious, jobs in America, and they have failed — and continue to do so,” Trump wrote. “If they were doing their job properly, our country would be saving trillions of dollars in interest cost. The board just sits there and watches, so they are equally to blame. We should be paying 1% interest, or better!”
{Matzav.com}
What can cost 1.9 billion dollars?
Powell was dealt with half year ago.