President Donald Trump said Wednesday that former Federal Reserve Chair Jerome Powell should be forced to resign from the Board of Governors over cost overruns tied to the renovation of the Fed's Washington headquarters.

Resign or Be Sued, Trump Warns

In a Truth Social post, Trump said the renovation is "Hundreds of Millions of Dollars over budget" and is now expected to cost at least $2.5 billion, which he predicted could eventually balloon to $3.5 billion or $4 billion.

"This is Jerome Powell's fault, and he should be forced to resign, IMMEDIATELY! If he doesn't resign, he should be sued, at the highest level, by the United States Government, for either corruption or incompetence" the President added.

Inside the Inspector General's Finding

The Fed's inspector general, in a report published Wednesday, said that mismanagement and weak oversight drove the cost overruns, though it stopped short of flagging any criminal conduct.

"At no point during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law had occurred requiring a referral to the U.S. Attorney General in accordance with the Inspector General Act," the report stated.

According to the findings, the renovation was projected to cost $1.3 billion in 2020, but the board-approved budget had climbed to $2.4 billion by August 2026, with construction expenses alone up by $960 million.

Broader inflation accounted for only part of that jump — producer prices rose 16% over the construction period, but plumbing and HVAC costs alone more than tripled, rising 223%.

Investigators also found the Fed never locked in a guaranteed maximum price for the project and lacked a system to flag ballooning costs to senior leadership in time.

Trump said he asked Attorney General Todd Blanche to review the report and determine next steps.

Powell's Term on the Board of Governors

In late April, the Department of Justice dropped its criminal probe into Powell, clearing the way for current chair Kevin Warsh's appointment.

Powell had said he would stay on as a Fed governor, calling the legal pressure "unprecedented," and reaffirmed that he would remain on the board until the investigation is "well and truly over, with transparency and finality."

His term as a governor runs through January 2028.