Washington D.C. – President Donald Trump is scheduled to visit the Federal Reserve headquarters on Thursday, intensifying his administration's scrutiny over the central bank's ongoing $2.5 billion renovation project and its chairman, Jerome Powell. The visit comes amidst accusations from the White House that Powell has mismanaged the extensive overhaul, with some officials suggesting it could constitute grounds for his removal. The planned inspection follows claims that Powell attempted to prevent White House staff from touring the facility.
The controversy centers on the significant cost and scope of the renovations to the Federal Reserve's historic buildings on the National Mall. White House officials, including Office of Management and Budget Director Russell Vought, have criticized the project as "ostentatious" and questioned its compliance with oversight regulations. The administration has pointed to the escalating budget, which has reportedly reached $2.5 billion, as a potential sign of mismanagement.
Federal Reserve Chair Jerome Powell has defended the renovation, explaining that the project involves two historic buildings constructed in the 1930s that required comprehensive structural repairs, safety upgrades, and hazardous materials removal. He stated that the renovation does not include luxurious features like VIP elevators or private dining rooms, as some critics have alleged. Powell recently requested the central bank's Inspector General to review the project's costs and oversight.
The visit and the renovation controversy are widely seen as the latest escalation in President Trump's long-standing pressure campaign against Chairman Powell. Trump has frequently criticized Powell and the Federal Reserve for not lowering interest rates, arguing that higher rates hinder economic growth. The administration's focus on the renovation project appears to be an attempt to establish "cause" for Powell's dismissal, a legal requirement for removing a Federal Reserve Board Governor.
Under the Federal Reserve Act, a President can only remove a Board Governor, including the Chair, "for cause," meaning inefficiency, neglect of duty, or malfeasance in office. Legal experts cite Supreme Court precedents, such as Humphrey's Executor v. United States, which protect the independence of agency heads from presidential removal based solely on policy disagreements. The renovation dispute presents a new front in this ongoing political and legal battle over the Fed's autonomy.
The original tweet from Nick Sortor highlighted the dramatic nature of the visit, stating:
"🚨 BREAKING: President Trump is visiting the Federal Reserve THURSDAY to check on Jerome Powell’s $2.5 BILLION “renovations” to the building. Powell attempted to BLOCK White House staff from visiting, so Trump decided he was PERSONALLY going. Powell’s in some deep sh*t! 🤣🔥" This social media post underscored the personal dimension of the escalating tensions between the President and the Fed Chair. The Federal Reserve has not issued an immediate comment regarding the President's personal visit.