President Donald Trump says he’s found the legal leverage needed to finally remove Federal Reserve Chair Jerome Powell, pointing to what he calls a “disgraceful” $2.5 billion renovation of the central bank’s headquarters in D.C.
Already momentum is building for Powell’s resignation, with Congresswoman Anna Paulina Luna confirming that Powell’s firing is imminent. Is
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Trump’s criticism centers on the ballooning costs of the Fed’s multi-year renovation project, originally approved in 2021 but now hundreds of millions over budget.
In a press stop on Tuesday, Trump doubled down:
“I think he’s terrible. I think he’s a total stiff. But the one thing I didn’t see him is a guy that needed a palace to live in,” Trump told reporters. “When you spend $2.5 billion on, really, a renovation, I think it’s really disgraceful.” – Donald Trump
Powell Resignation: You Live In a Banana Republic Now
By arguing Powell mismanaged funds, Trump is trying to sidestep restrictions on firing a Fed chair over rate decisions. But pulling the trigger could backfire.
Removing Powell would mark an unprecedented breach of central bank autonomy, and it could be the kind of move that rattles investors, unanchors inflation expectations, and throws the Fed’s mandate into political crossfire.
The argument goes that while the puppet Trump installs will lower rates to zero, it’ll also place more control in the executive branch. We’ll experience one gigacycle to end all cycles, followed by a severe lack of trust in the rule of law.
I'll believe the rumors when it actually happens, but I would love to see President Trump fire Jerome Powell, immediately appoint himself fed chair, change all the locks before a district judge can reinstate Powell, and cut the rates 3 points with a frosting-covered sword pic.twitter.com/Npsuzq1lpC
— Whale Psychiatrist ™️ (@k_ovfefe2) July 16, 2025
Legally, Powell can only be removed “for cause,” such as misconduct. Trump’s case appears to hinge on accusations that Powell misrepresented renovation costs in congressional testimony and violated the terms of local building approvals.
Fed watchers warn that firing Powell now—before his term ends in May 2026—could damage U.S. creditworthiness, spike borrowing costs, and raise inflation expectations.
Inside the Fed’s $2.5B Renovation Blowup
While the Fed insists this is the first “comprehensive renovation” since the building’s opening, Trump officials say the price tag jumped nearly $600 million over budget due to inflation, labor shortages, and underground construction constraints tied to D.C. zoning laws.
In 2024, the Fed canceled plans for a third building entirely due to rising costs. Budget Director Russ Vought blasted the project as a waste of taxpayer money:
“Trump is extremely troubled about the Fed’s ostentatious overhaul,” said Russ Vought “The plans call for rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble, and much more.”
Powell pushed back hard, alleging that, “There’s no VIP dining room. There’s no new marble… There are no special elevators. There are no new water features. And there’s no roof terrace gardens.”
Trump’s Strategy: Overspending + Misrepresentation = ‘Cause’
Trump appears ready to capitalize on Powell. Deputy Chief of Staff James Blair, a Trump appointee to the commission, said Powell’s testimony “leads me to conclude the project is not in alignment with approved plans.”
If Trump pulls it off, expect the golden crypto bull run due to low interest rates and institutional FOMO, but also a constitutional migraine. It’d be a win for markets, a loss for precedent.
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Key Takeaways
- President Donald Trump says he’s found the legal leverage needed to finally remove Federal Reserve Chair Jerome Powell.
- All eyes are on Powell this month. As inflation lingers and labor metrics soften.
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