The Zhitong Finance App learned that US President Trump asked former Federal Reserve Chairman Powell to resign as the governor of the Federal Reserve on Wednesday. An earlier inspection report on the Federal Reserve headquarters renovation project pointed out that there were a series of problems with project management, which led to significant cost overruns. However, the investigation did not reveal any criminal offenses relating to the project.
Trump posted on social media on Wednesday that the Federal Reserve headquarters renovation project “seriously exceeded the budget,” and that Powell “should at least be forced to resign as a member of the Federal Reserve.” Trump also said that he has asked Attorney General Todd Blanche to study the Inspector General's report and “decide what action should be taken.”
Trump then further blamed Powell for the problems with the renovation project, saying that Powell should resign “immediately,” and said that if Powell refuses to resign, the US government should consider taking legal action against him on the grounds of “corruption or incompetence.” The above statements are all Trump's own accusations against Powell and the project's responsibility.
The background of Trump's latest statement is an investigation by the Federal Reserve's supervisory agency on the headquarters renovation project. According to reports, the inspection report indicates that the Federal Reserve has many shortcomings in project supervision and management. These problems have led to an overexpenditure of about 1 billion US dollars in renovation costs for two historic buildings located near Washington's National Mall. However, the investigation did not reveal any criminal offenses relating to the renovation project.
The Federal Reserve headquarters renovation project has continued to be criticized by Trump in recent years. During Powell's tenure as chairman of the Federal Reserve, in addition to publicly criticizing Powell on monetary policy many times, he also used the cost of headquarters renovation as one of the main topics to criticize Powell.
The central bank said earlier that the project involved large-scale renovation of two historic buildings, requiring the disposal of hazardous materials such as asbestos and lead, while meeting modern safety and construction standards, and said that related costs were affected by various factors.
The conflict between Trump and Powell previously focused mainly on the area of monetary policy. Trump has repeatedly asked the Federal Reserve to lower interest rates and publicly criticized Powell's policy decisions.
Powell ended his term as chairman of the Federal Reserve in May of this year, and Walsh took over as chairman after confirmation by the Senate. However, Powell did not leave the Federal Reserve because of this. Instead, he will continue to serve as a member of the Federal Reserve. His term as a member will end in 2028.
Trump's request for Powell to resign as a board member means that the long-standing dispute between the two sides over monetary policy and the Federal Reserve headquarters renovation project has not ended even after Powell stepped down as chairman. The latest inspection report indicated that the renovation project had problems with supervision and cost management, but no criminal offenses were found. Trump, on the other hand, continues to demand that Powell be held to account and that the Department of Justice decide whether to take further action after studying the report.