The White House is pushing for an inspection of the US Federal Reserve headquarters in Washington after President Donald Trump suggested the central bank had mismanaged funds for building renovations. The move comes as Trump has repeatedly pressured Fed Chair Jerome Powell to resign and lower interest rates, which Powell has resisted, citing inflation risks from Trump's tariffs.
White House budget director Russell Vought told reporters on Thursday that the administration wanted an on-site inspection of the Fed's troubled $2.5bn building renovations. Trump has suggested there may be fraud involved with the cost overruns, which rose from an initial $1.9bn budget in 2019. The Fed has said the renovations cover two buildings not comprehensively updated since the 1930s.
Trump has threatened to fire Powell multiple times, though he recently said he is unlikely to do so unless Powell leaves for fraud. However, legal experts note that the Supreme Court has indicated the Fed's structure protects its independence, making a firing potentially subject to a lengthy legal battle. Wall Street investors have also opposed the idea, with stocks dipping on reports of Trump floating Powell's dismissal.
JPMorgan Chase CEO Jamie Dimon stressed the importance of Fed independence, while Powell's term is set to end in May 2026. Trump appointed Powell in 2018, and President Joe Biden extended his term in 2022.
