Trump Again Threatens to Fire Fed Chair Powell as Prosecutors’ Unannounced Fed HQ Visit Escalates Renovation Probe
Former President Donald Trump renewed public threats to remove Federal Reserve Chair Jerome Powell if Powell does not step down when his term expires on May 15, 2026, telling Fox Business’ Maria Bartiromo he will “have to fire” Powell. The comments came as federal prosecutors from the office of Jeanine Pirro showed up unannounced at the Federal Reserve’s $2.5 billion headquarters renovation site this week seeking to inspect the project but were turned away by staff, an episode first reported by The Washington Post and also noted by CBS News. Trump used the visit to reiterate support for the criminal probe into the renovation — contrasting the $2.5 billion figure with his assertion that he could have done the job “for $25 million” and suggesting “incompetence, corruption or both.”
The dispute has immediate institutional consequences: Trump’s nominee to replace Powell, former Fed governor Kevin Warsh, is scheduled for a Senate Banking Committee confirmation hearing on April 21, but Sen. Thom Tillis has vowed to block Warsh until the renovation investigation concludes, and Powell has said he would remain Fed chair “pro tem” under existing rules if a successor has not been confirmed by May 15. The scale of the renovation and the attention it has drawn come amid a broader pattern of large federal construction cost overruns — for example, major projects at the National Nuclear Security Administration grew from $2.1 billion in 2023 to $4.8 billion by mid‑2025 — a reminder that escalating budgets are not unique to the Fed and can stem from management, vendor and input-cost pressures. Warsh’s prior comments about reducing the Fed’s bloated balance sheet also signal a potentially different policy approach should he be confirmed.
Reporting on the story has shifted from routine coverage of a high‑cost capital project to a politically charged criminal probe and an explicit presidential threat to the central bank’s independence. Early attention focused on the size and justification of the renovation costs; more recent reporting by The Washington Post and follow-ups by outlets including CBS News highlighted the unannounced arrival of prosecutors and their being turned away, which in turn has amplified scrutiny and political debate. Social media reflects those divisions: some accounts defend the probe as warranted given an alleged 80% overrun, others defend Powell and emphasize legal protections that limit a president’s ability to remove the Fed chair, while commentators note the renovation is financed from the Federal Reserve’s own revenues rather than direct taxpayer appropriations.
📊 Relevant Data
In the early 1970s, President Richard Nixon pressured Federal Reserve Chair Arthur Burns to keep interest rates low ahead of the 1972 election, which contributed to rising inflation in subsequent years.
How Immune Is the Federal Reserve From Political Pressure? — Econofact
Kevin Warsh, a former Fed governor, has expressed views that the Federal Reserve's balance sheet has grown excessively and should be reduced to improve inflation management and monetary policy effectiveness.
Kevin Warsh’s Three Tasks: Shrink the Fed, Tame Inflation, Manage the President — The Wall Street Journal
Major federal construction projects frequently face substantial cost overruns; for instance, the National Nuclear Security Administration's key projects experienced cumulative cost growth from $2.1 billion in 2023 to $4.8 billion as of June 2025, driven by management, vendor, and input cost issues.
Costs and delays on NNSA construction projects more than doubled since 2023: GAO report — Breaking Defense
📌 Key Facts
- Trump told Fox Business’ Maria Bartiromo he will “have to fire” Federal Reserve Chair Jerome Powell if Powell does not step down when his term ends on May 15, 2026, saying he has “held back firing him” until now.
- Trump expressed public support for the federal criminal probe into the Federal Reserve’s $2.5 billion headquarters renovation, alleging it could have been done “for $25 million” and suggesting possible “incompetence, corruption or both.”
- Federal prosecutors showed up unannounced at the Fed’s headquarters construction site seeking to inspect it but were turned away by staff; that visit was first reported by The Washington Post and confirmed by MS NOW.
- Kevin Warsh, Trump’s nominee to replace Powell as Fed chair, is scheduled for a Senate Banking Committee confirmation hearing on April 21, 2026.
- Sen. Thom Tillis (R‑N.C.) has vowed to block Warsh’s confirmation until the Powell investigation concludes.
- Powell has said that if Warsh is not confirmed by May 15, he will remain as Fed chair “pro tem” under regulations, a scenario made more likely by Tillis’s pledged blockade.
📰 Source Timeline (2)
Follow how coverage of this story developed over time
- Trump told Fox Business’ Maria Bartiromo he will “have to fire” Jerome Powell if Powell does not step down when his term ends on May 15, 2026, saying he has “held back firing him” until now.
- Trump reiterated public support for the federal criminal probe into the Federal Reserve’s $2.5 billion headquarters renovation, contrasting it with what he claims he could have done “for $25 million” and suggesting possible “incompetence, corruption or both.”
- The article confirms that on Tuesday federal prosecutors showed up unannounced at the Fed’s headquarters construction site seeking to inspect it but were turned away by staff, a visit first reported by The Washington Post.
- Kevin Warsh, Trump’s nominee to replace Powell as Fed chair, has an April 21 Senate Banking Committee confirmation hearing, but Sen. Thom Tillis (R‑N.C.) has vowed to block Warsh’s confirmation until the Powell investigation concludes.
- Powell has stated he will remain as Fed chair “pro tem” under regulations if Warsh is not confirmed by the time his term expires on May 15, a scenario now more likely given Tillis’s blockade.