Trump Reverses Course On Powell?
President Donald Trump said Wednesday that he does not currently plan to remove Jerome Powell as chairman of the Federal Reserve, easing speculation after news broke of a Justice Department investigation involving the central bank.
“I don’t have any plan to do that,” Trump told Reuters when asked directly whether Powell could be dismissed from his post.
DOJ Investigates Costly Federal Reserve Renovation
The comments come as the Department of Justice confirmed it is examining the Federal Reserve’s controversial headquarters renovation in Washington, D.C. The project has drawn scrutiny after its estimated cost ballooned to approximately $2.5 billion, prompting concerns about fiscal oversight and transparency.
Powell acknowledged Sunday that the Fed had received grand jury subpoenas related to the renovation. According to his statement, investigators are reviewing testimony he gave before the Senate Banking Committee last June, where he addressed the scope, budget, and timeline of the project.
The probe has fueled renewed debate over accountability at the Federal Reserve, particularly at a time when inflation and interest rates remain top concerns for retirees, homeowners, and savers.
Trump Denies Prior Knowledge of Investigation
President Trump has denied having any advance knowledge of the Justice Department’s actions and said the investigation was not initiated at his direction.
Still, Trump has long been openly critical of Powell’s leadership, especially regarding interest rate policy. Throughout last year, the president repeatedly argued that the Fed kept rates too high for too long, hurting consumers, slowing economic growth, and increasing borrowing costs for working families and seniors on fixed incomes.
Powell was originally nominated by Trump during his first term in 2017, a point the president has frequently referenced when discussing their disagreements.
“Too Early” to Decide Powell’s Future
When asked whether the investigation could eventually influence his position, Trump said any decision would come later.
“Right now, we’re in a bit of a holding pattern,” Trump said. “We’re going to see how things develop and determine what to do. But it’s too soon to get into that.”
For now, the White House appears willing to let the legal process unfold while continuing to pressure the Federal Reserve over policies conservatives argue have failed to protect everyday Americans from rising costs.
As scrutiny grows, the investigation is likely to intensify questions about government spending, central bank independence, and who ultimately bears responsibility when billion-dollar projects spiral out of control.
