Trump Eyes Powell’s Job as Renovation Controversy Heats Up

​The Trump administration might be laying the groundwork to oust Federal Reserve Chair Jerome Powell—and the spark for this political firestorm is an unexpected one: a $2.5 billion Fed renovation project.

National Economic Council Director Kevin Hassett confirmed on Sunday that the White House is reviewing whether it can fire Powell before his term ends next spring. While Trump has publicly said he doesn't want to do it, Hassett made it clear: “If there’s cause, he certainly can”.

A Renovation That’s Raising Eyebrows
At the heart of this potential showdown is the Fed’s HQ renovation, which has reportedly gone $700 million over budget. The Fed says taxpayers aren’t footing the bill—it's self-funded through fees and investments—but that hasn’t stopped Trump’s allies from turning it into a rallying point.

OMB Director Russell Vought slammed Powell’s leadership, calling the renovation "gross mismanagement," and said he’s launching an investigation into the matter. He’s even sent Powell a list of pointed questions, demanding answers about the project’s scope, spending, and accountability.

Setting the Stage for Removal
This could be more than just public pressure. Vought’s aggressive approach suggests a strategic effort to build a “cause” to justify Powell’s dismissal before his term ends. Hassett confirmed that how the Fed responds to Vought’s inquiries will likely determine whether Trump moves forward with removing him.

The Fed, for its part, has started quietly defending itself. On Friday, it posted an FAQ page refuting several rumors, including the claim that it was building “VIP dining rooms.” That didn’t stop critics like former Fed Governor Kevin Warsh, a potential replacement, from calling the whole thing “outrageous” and evidence the Fed has “lost its way”.

The Succession Drama Begins
Trump has already hinted he has other names in mind for the job when Powell’s term ends. Hassett himself is reportedly a front-runner. Warsh, meanwhile, made a thinly veiled pitch on Fox News, aligning himself with Trump’s economic messaging.

Whether Trump pulls the trigger or waits until Powell’s term ends next May, one thing is clear: this isn’t just about construction budgets. It’s about power, legacy, and who gets to steer the world’s most influential central bank through the next storm.

​Bottom line: Trump says he doesn’t want to fire Powell. His team is acting like it might. And Powell’s job may hinge on how the Fed answers questions about a building project that suddenly became a political flashpoint.