President Donald Trump claimed in a new interview that outgoing Chair of the Federal Reserve Jerome Powell is “incompetent,” and even “corrupt,” in his handling of renovations underway at the Federal Reserve building.
“It’s the most expensive construction job ever built anywhere in the world per square foot. It’s crazy. They’re either corrupt, which somebody’s corrupt has to be, or grossly incompetent. Now we know he’s incompetent, but the question is, is he corrupt?” Trump said during an appearance on “Kudlow.”
“I would have been able to do that job for $25 million, and it would have been much better than what they’re ending up with,” the president added, estimating that the project’s total cost was up to $4 billion, nearly double the price tag given in Fed documents.
Documents on the Fed’s website maintain that renovation costs are $2.5 billion, not $4 billion, as Trump said.
TRUMP SAYS HE WILL NOT DROP DOJ CRIMINAL PROBE INTO FED CHAIR JEROME POWELL
When Trump visited the Fed in July 2025, he clashed with Powell over the cost of the renovations, with the president saying the cost was up to approximately $3.1 billion at the time. As Trump told the press that the cost had gone up from $2.7 billion to $3.1 billion, Powell said he was “not aware of that.”
The president said the figures “just came out” and proceeded to give Powell a document purportedly from the Fed. When the chairman pushed back, saying the document had included a project that had been completed five years earlier.
While Trump has already tapped Kevin Warsh to replace Powell, a federal investigation is delaying the transition. FOX Business host Larry Kudlow asked the president if it was “worth holding up the Warsh nomination” to pursue the case against Powell, and the president said it was unclear.
“I don’t know. I mean, we’ll have to see what happens,” Trump said. “Look, I’ve been fighting Tillis for a long time — so much so that he ended up quitting — so let’s see.”
Sen. Thom Tillis, R-N.C., a member of the Senate Committee on Banking, Housing and Urban Affairs, has said that he would “oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.” Despite his determination to block Wash’s nomination, Tillis did not seem to have a problem with Trump’s pick, calling him a “qualified nominee with a deep understanding of monetary policy.”
TRUMP VS THE FEDERAL RESERVE: HOW THE CLASH REACHED UNCHARTED TERRITORY
The costs of the renovations at the Fed have become central to a Justice Department criminal investigation opened in January into Powell’s congressional testimony about the project.
On Jan. 11, Powell released a video message regarding the criminal probe, calling it “unprecedented” and saying that it “should be seen in the broader context of the administration’s threats and ongoing pressure.”
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project. Those are pretexts. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” Powell said in the January video.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” he added.
Earlier this month, the president doubled down on the probe, saying the DOJ would not drop its criminal investigation. Speaking to reporters in the Oval Office, Trump said Jeanine Pirro, the U.S. attorney for the District of Columbia, will “take it to the end and see.” He also said he “feels badly” for Warsh, who “may not have an office for four years,” referring to the overhaul of the Fed’s buildings.
Trump nominated Powell during his first term, something that he recently told Kudlow was “a mistake.” He also said Powell was a “runner-up.” The president told Kudlow that “my secretary of the Treasury wanted him so badly,” likely referring to Steven Mnuchin.
The president also expressed his confidence in Warsh, saying he believes the nominee could help the U.S. reach his goal of 15% economic growth.
Fox Business reached out to the Federal Reserve for comment.
Fox Business’ Amanda Macias contributed to this report.
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