During a cabinet meeting at the White House Tuesday, President Donald Trump continued pushing for an investigation into Federal Reserve Chair Jerome Powell over a proposed $2.5 billion renovation to the Federal Reserve headquarters.
“It’s OK with me. I think he’s terrible,” Trump told reporters. “I call him ‘Too Late.’ “He’s always late. But he wasn’t late with Biden before the election, he was cutting [rates] like crazy.”
According to the New York Post, the projected renovations by the Fed have risen by 30% from its original estimate of $1.9 billion.
In mid-June, the Federal Reserve Open Market Committee (FOMC) concluded its June meeting and once again held the federal funds rate steady at 4.25%-4.50%, amid an environment with tariff backlash, a rise in inflation, and a weakening economy. This marked the fourth consecutive meeting that the Fed held rates at 4.25%-4.50%.
“I am asking Congress to investigate Chairman Jerome Powell, his political bias, and deceptive Senate testimony, which is enough to be removed ‘for cause,’” said Federal Housing Finance Agency (FHFA) Chair William Pulte in a social media post on X. “Jerome Powell’s $2.5B Building Renovation Scandal stinks to high heaven, and he lied when asked about the specifics before Congress. This is nothing short of malfeasance and is worthy of ‘for cause.’”
Pulte accused Powell of lying to Congress after he denied that a $2.5 billion renovation of the Fed’s D.C. headquarters will load the facility with lavish amenities.
“As Senator Cynthia Lummis said, ‘he [Chairman Powell] made a number of factually inaccurate statements to the Committee regarding the Fed’s plush private dining room and elevator, skylights, water features, and roof terrace,’ and that ‘this is typical of mismanagement and don’t bother me attitude that Chair Powell has always shown,’” said Pulte in an official FHFA statement.
Other members of Congress have joined Trump and Pulte in criticizing the Fed Chair.
“President Trump is right, Jay Powell has been a TERRIBLE chair. Under his leadership, the Federal Reserve is unaccountable, out of control, and failing families. He’s got to go!” said Sen. Rick Scott via social media.
Powell’s testimony before the Senate Banking Committee sparked outrage because the renovation plans contradicted the Fed’s own planning documents that were signed off by U.S. government in 2021, and the plans had not been revised since. Other costs, such as elevator repairs that travel directly to Federal Reserve Board members’ offices and marble fixtures, were part of basic upkeep of that had always been in the building, Powell said.
Prior to the June Fed meeting President Trump met with Powell at the White House over the Fed’s refusal to cut interest rates, and to discuss the state of the nation’s economy, employment, and inflation.
White House Press Secretary Karoline Leavitt confirmed the Powell meeting, telling reporters that the Fed’s summary was correct, but noting that Trump pushed Powell to lower rates.
“The President did say that he believes the Fed Chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries. The President’s been very vocal about that, both publicly and now I can reveal privately as well,” Leavitt said in a briefing with the press.
Over the past few weeks, Pulte and Trump have both targeted Powell, criticizing the Federal Reserve Chair in a series of strongly worded social media posts. Both Trump and Pulte are placing blame on the Fed Chair for not lowering rates to ease the nation’s current economic turmoil.
“They wanted to replace U.S. Federal Housing’s carpet for like 20 grand and I told them, ‘No way!’—how the hell does somebody spend 2 1/2 billion dollars on a renovation and sleep at night?” said Pulte on X.
The President does not have direct control over the Federal Reserve’s policy decisions, but does have influence. The President can nominate and appoint members of the Federal Reserve Board of Governors, including the Chair, which can influence the overall direction of the Fed, and can also voice their opinions about monetary policy. The President selects one member of the Board of Governors to serve as Chair of the Board, who also serves as the FOMC Chair.
The FOMC, which makes the actual monetary policy decisions, is comprised of all seven governors and five of the 12 regional Federal Reserve Bank Presidents. While the chair has one vote like the other governors, the structure is designed to prevent one individual, including the president, from dictating decisions and policies. Trump appointed Powell as head of the Federal Reserve during his first term in 2018, with his term ending in May 2026.
The Federal Reserve System performs five general functions to promote the effective operation of the U.S. economy:
- To promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy;
- Promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad;
- Promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole;
- Fosters payment and settlement system safety and efficiency through services to the banking industry and the U.S. government that facilitate U.S.-dollar transactions and payments; and
- Promotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and the administration of consumer laws and regulations.
