Donald Trump’s anger towards Jerome Powell does not weaken. On Wednesday, September 30, the American president once again threatened the former head of the American Federal Reserve (Fed) with criminal prosecution shortly after the latter was cleared by an administrative investigation.
The former real estate developer finds the slippage in the bill for the renovation of the central bank headquarters in Washington suspicious. He holds responsible the person who until recently headed the institution: his bête noire Jerome Powell, whom he sought to oust on the grounds that he was piloting a monetary policy that was too austere for his taste.
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“At no time during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law was committed, justifying a referral” to justice, wrote the General Inspectorate (OIG) of the Fed in a report posted online Wednesday.
“Although our report highlights shortcomings in the management of the renovation project, (…) we did not find any administrative misconduct during our evaluation,” adds the independent organization.
Donald Trump brushed aside this conclusion in a furious message on his Truth Social platform.
Accusing Jerome Powell of having spent too much money and spoiling the historic architecture of the building, the head of state wrote: “He should be forced to resign IMMEDIATELY! If he does not resign, he should be prosecuted by the American government, for corruption or incompetence.” He also reports having asked the Minister of Justice, Todd Blanche, his former personal lawyer, “to study the report.”
Pressure from Trump
The cost of the renovation and expansion project – still underway in the American capital – had increased from 1.3 billion dollars in February 2020 to nearly 2.4 billion in December 2024, it is specified in the document.
The Federal Reserve notably explained that it faced a surge in construction costs (materials, labor) over the period.
The OIG was contacted by Jerome Powell himself in July 2025, when presidential pressure suddenly increased.
Donald Trump wants lower interest rates to stimulate growth, regardless of stubborn inflation.
For months, he insulted Jerome Powell almost daily in the hope of getting him out before the end of his mandate (scheduled for spring 2026). Then he began to question his probity, believing he detected “fraud” behind the soaring cost of work at Fed headquarters.
Jerome Powell, then head of the American Federal Reserve, and American President Donald Trump visit the Federal Reserve renovation site in Washington, July 24, 2025. © Chip Somodevilla, Getty, AFP (archives)
The Republican billionaire even made a surprise visit to the site at the end of July 2025, helmet on, alongside Jerome Powell.
A “witch hunt”, according to Elizabeth Warren
The head of state then appeared to support the launch by prosecutor Jeanine Pirro of an investigation that could lead to criminal proceedings against the highest American monetary official.
Jerome Powell revealed the existence of the procedure last January, denouncing a “pretext” and an unprecedented attack on the independence of the Central Bank.
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The economic world balked, as did part of the Republican majority, which for a time blocked the nomination of Jerome Powell’s successor designated by Donald Trump, Kevin Warsh.
Prosecutor Pirro, appointed by the president, ended up closing the investigation in April, leaving the case in the hands of the general inspectorate. Kevin Warsh was able to take office.
Kevin Warsh, the new boss of the American Federal Reserve, at the institution’s headquarters in Washington, September 16, 2026. © Andrew Harnik, Getty, AFP (archives)
The report confirms “that federal prosecutor Jeanine Pirro and Justice Minister Todd Blanche, loyal servants of Trump, have no basis to relaunch the witch hunt” against Jerome Powell, said Democratic Senator Elizabeth Warren in a statement. “The president should stop trying to fire Fed governors to cover up his economic failures and instead end his chaotic tariffs and war in Iran,” she added.
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The American president, who also tried to fire Governor Lisa Cook, was prevented from doing so by the Supreme Court.
Jerome Powell still sits at the Fed, as simple governor. He explained that he preferred to stay there as long as pressure against him remained.
With AFP
