The economy is at a crossroads. And Trump holds the key to fix it.
Now Fed Chair Jerome Powell is about to lose his job if President Trump gets his way.
Trump Signals Accountability for Fed Mismanagement
President Trump, speaking to reporters on December 29, 2025, at Mar-a-Lago alongside Israeli Prime Minister Benjamin Netanyahu, outlined potential legal steps against Federal Reserve Chair Jerome Powell.
He described the possibility of pursuing what he called a “gross incompetence” lawsuit, tied directly to oversight failures in a major construction initiative. “We’re thinking about bringing … what’s called a ’gross incompetence’ lawsuit,” Trump stated, emphasizing his determination to address wasteful spending on public projects.
He elaborated further: “It’s gross incompetence against Powell. And it was his baby,” adding, “The guy’s just incompetent. There’s nothing you can do about it.”
Trump highlighted the renovation’s escalating expenses, noting, “these aren’t outstanding buildings. These are small buildings,” and claimed costs had reached levels far beyond reasonable expectations, describing it as “the highest price of construction per square foot in the history of the world.”
Renovation Overruns Highlight Leadership Concerns
The controversy centers on the ongoing overhaul of the Federal Reserve’s historic headquarters buildings in Washington, D.C., including the Marriner S. Eccles Building constructed in the 1930s.
Initial projections pegged the work at around $1.9 billion, but expenses have climbed to $2.5 billion, with some accounts suggesting even higher totals when factoring in related elements.
Federal Reserve officials have pointed to post-pandemic surges in material costs like steel and cement, labor shortages, design adjustments for historic preservation, and unexpected hazards such as extensive asbestos removal, lead contamination, and soil issues.
Despite these explanations, Trump has framed the overruns as evidence of poor stewardship, aligning with his broader emphasis on fiscal discipline and efficient use of resources in government operations.
Powell’s Position and Broader Economic Critique
Originally nominated by Trump in 2017, Powell received a second term from the previous administration in 2022. His chairmanship ends in May 2026, with his board governorship extending to 2028.
When pressed on whether he would push for Powell’s resignation, Trump affirmed he believed Powell should step down but added restraint due to timing: “we’re so close.”
Trump has long advocated for swifter reductions in borrowing costs to fuel growth, viewing delays as a drag on the robust economy his policies have fostered.
He plans to name Powell’s successor soon, potentially drawing from candidates like former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett, signaling a shift toward leadership more aligned with priorities of rapid economic expansion and accountability.
