To The Moon

President Donald Trump on Wednesday demanded that former Federal Reserve Chair Jerome Powell resign from his position as a Fed governor, following an inspector general's report that flagged a series of management problems in the central bank's headquarters renovation project and led to substantial cost overruns. The investigation, however, did not uncover any criminal wrongdoing in the project.

In a social media post on Wednesday, Trump said the Federal Reserve headquarters renovation was "severely over budget" and that Powell "at the very least should be forced to resign from the Fed Board of Governors." Trump also said he had asked Attorney General Todd Blanche to review the inspector general's report and "decide what action should be taken."

Trump went on to pin the blame for the renovation problems squarely on Powell, saying Powell should resign "immediately," and adding that if Powell refused to step down, the U.S. government should consider taking legal action against him on grounds of "corruption or incompetence." All of these statements were Trump's own allegations regarding Powell and responsibility for the project.

Trump's latest remarks come against the backdrop of an investigation by the Fed's watchdog into the headquarters renovation. According to reports, the inspector general's report identified multiple deficiencies in the Fed's oversight and management of the project, which contributed to roughly $1 billion in cost overruns on the renovation of two historic buildings near the National Mall in Washington. The investigation nevertheless found no criminal violations in the renovation work.

The Federal Reserve headquarters renovation has drawn persistent criticism from Trump in recent years. During Powell's tenure as Fed chair, Trump not only repeatedly attacked Powell publicly over monetary policy, but also made the headquarters renovation costs one of his main lines of criticism against him. The central bank has previously said the project involves a large-scale overhaul of two historic buildings, requiring the handling of hazardous materials such as asbestos and lead while meeting modern safety and building standards, and has said the related costs were affected by multiple factors.

Tensions between Trump and Powell had previously centered mainly on monetary policy. Trump repeatedly demanded that the Fed lower interest rates and publicly criticized Powell's policy decisions. Powell's term as Fed chair ended in May of this year, with Warsh taking over as chair after Senate confirmation. Powell, however, did not leave the Fed as a result, instead remaining as a Fed governor, with his board term set to expire in 2028.

Trump's demand this time for Powell to resign from the governor position means the long-running dispute between the two sides over monetary policy and the Fed headquarters renovation has not ended even after Powell stepped down as chair. The latest inspector general's report pointed to problems in oversight and cost management in the renovation project but found no criminal wrongdoing. Trump, for his part, continues to demand that Powell be held accountable and has asked the Justice Department to review the report and decide whether further action should be taken.