Story perspectives

Trump Demands Powell Resignation After Watchdog Clears Him

By Drooid · Oct 1, 2026, 3:28 PM UTC · How we work

Summary

Story summary

President Donald Trump demanded Fed Chair Jerome Powell resign after a September 30, 2026 watchdog report cleared him of criminal wrongdoing.
The 120-page review found no criminal violations or administrative misconduct by Powell or Federal Reserve staff.
The report noted $2.4 billion renovation overruns and the Board’s failure to set a guaranteed maximum price.
Fed Chair Kevin Warsh pledged to implement all seven corrective actions, including an independent audit of contractor.

History

Historical Context

In 1998, after LTCM’s leveraged bets collapsed amid the Asian and Russian crises, the Federal Reserve Bank of New York convened 14 major banks to inject a $3.6 billion recapitalization, averting a systemic panic. The rescue, led by founder John Meriwether and overseen by the Fed, sparked lasting debate over moral-hazard and the central bank’s role in market stability.

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Story summary

President Donald Trump demanded Fed Chair Jerome Powell resign after a September 30, 2026 watchdog report cleared him of criminal wrongdoing.
The 120-page review found no criminal violations or administrative misconduct by Powell or Federal Reserve staff.
The report noted $2.4 billion renovation overruns and the Board’s failure to set a guaranteed maximum price.
Fed Chair Kevin Warsh pledged to implement all seven corrective actions, including an independent audit of contractor.

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