Story perspectives

Trump Demands Powell Resign or Faces Lawsuit

By Drooid · Oct 1, 2026, 2:38 PM UTC · How we work

Summary

Story summary

U.S. President Donald Trump demanded former Fed Chair Jerome Powell resign or face a lawsuit.
Federal Reserve inspector general said on September 30, 2026 no criminal wrongdoing occurred.
Report listed $2.5 billion cost, up from $1.317 billion estimate, due to inflation, limited bidding, design changes, asbestos.
Republican Senator Tim Scott called the overruns “egregious” and urged stricter oversight.
Fed Chair Kevin Warsh said he will follow IG recommendations and hire an auditor.

History

Historical Context

Jimmy Carter named Paul Volcker chair of the Federal Reserve on July 25 1979, tasking him with aggressive anti-inflation measures that drove the federal funds rate to a 20 % peak in June 1981 and helped lower inflation from a 14.8 % high in March 1980. Decades later, President Donald Trump’s call for Jerome Powell’s resignation echoes the same political pressure on the Fed’s independence.

1 of 2

Story summary

U.S. President Donald Trump demanded former Fed Chair Jerome Powell resign or face a lawsuit.
Federal Reserve inspector general said on September 30, 2026 no criminal wrongdoing occurred.
Report listed $2.5 billion cost, up from $1.317 billion estimate, due to inflation, limited bidding, design changes, asbestos.
Republican Senator Tim Scott called the overruns “egregious” and urged stricter oversight.
Fed Chair Kevin Warsh said he will follow IG recommendations and hire an auditor.

1 / 2