- Fed project hits $2.5bn after $700m cost hike
- White House says Trump may fire Powell ‘for cause’
- Controversy rises weeks before key Fed decision
By Grateful Ogunjebe
Former U.S. President Donald Trump is considering firing Federal Reserve Chair Jerome Powell over a $700 million renovation overrun at the Fed’s headquarters.
Eko hot blog reports that White House economic adviser Kevin Hassett said Trump “has the authority” to remove Powell if evidence of mismanagement is confirmed.
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The Federal Reserve’s Washington building project, initially budgeted much lower, has ballooned to $2.5 billion, drawing scrutiny.
Hassett noted that religiously conservative budgeting should have prevented such a massive overrun, calling the situation “deeply troubling.”
Lawmakers on both sides have raised concerns. Republicans accuse Powell of financial negligence, while Democrats demand more transparency.
Powell was appointed in 2018 by Trump but has had a rocky relationship with the former president over interest rate policies.
The law allows a president to remove the Fed Chair only “for cause,” meaning legal justification must be established through clear evidence.
Experts say firing Powell over renovation costs could face legal hurdles unless deliberate mismanagement is proven.
The Fed has not issued a formal response but is reportedly preparing a spending breakdown to submit to Congress.
This development comes just three weeks before the Fed’s next interest rate decision, intensifying political pressure.
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