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“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.”
He then delivered a blunt assessment of Powell’s stewardship.
“They’re either corrupt, which somebody’s corrupt has to be, or grossly incompetent,” Trump said.
“Now we know he’s incompetent, but the question is, is he corrupt?”
Fed Renovation Costs Double—Then Double Again
The renovation project originally launched in 2019 with a reported budget of $1.9 billion. Over time, official Federal Reserve documents increased that estimate to $2.5 billion. Trump now says the true figure is nearing $4 billion, more than double the original cost.
That discrepancy came into public view during Trump’s visit to the Federal Reserve in July 2025, when the president confronted Powell directly in front of reporters.
Trump stated the cost had already jumped to $3.1 billion. Powell responded by claiming he was unaware of that figure.
Trump then handed Powell documentation showing the higher costs. Powell pushed back, arguing the paperwork included a separate project completed five years earlier.
Trump now cites that exchange as proof that something is seriously wrong—either Powell doesn’t know what’s happening under his watch, or he doesn’t want to know.
Criminal Investigation Freezes Powell’s Replacement
The renovation fiasco has now become central to a Justice Department criminal investigation launched in January, focusing on Powell’s congressional testimony about the project’s costs.
That investigation has effectively blocked Trump’s preferred replacement, Kevin Warsh, from taking office.
Senator Thom Tillis has publicly drawn a line in the sand.
He’ll “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.”
When Kudlow asked whether it was worth delaying Warsh’s nomination, Trump gave a cautious response.
“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.”
Powell Pushes Back—Trump Doubles Down
Trump expressed sympathy for Warsh, saying the renovation chaos could leave him sidelined indefinitely.
Powell, meanwhile, has aggressively defended himself. In January, he released a video calling the investigation “unprecedented” and claiming it was really an attempt to force the Fed to base interest rate decisions on “the preferences of the president.”
Trump isn’t buying it.
Earlier this month, he told reporters that U.S. Attorney Jeanine Pirro will pursue the case fully, saying she will “take it to the end and see.”
A Pattern of Failure at the Federal Reserve
Powell was appointed Fed chairman in 2018 during Trump’s first term—a decision Trump now openly regrets.
He told Kudlow that Powell was not his top choice.
The president explained that Powell was a “runner-up” and said, “my secretary of the Treasury wanted him so badly,” referring to Steven Mnuchin.
Trump’s confidence in Warsh, however, is unmistakable. He told Kudlow he believes Warsh could help unlock 15% economic growth, a sharp contrast to what he sees as stagnation under Powell.
Private Sector Reality vs. Government Excuses
The Federal Reserve has blamed the renovation’s soaring costs on asbestos removal, toxic soil contamination, and rising material prices.
Construction professionals aren’t impressed.
These are common challenges in large projects—issues competent managers account for from day one, not excuses used later to justify doubling the budget.
In the private sector, mistakes like this end careers. In Washington, they seem to earn press conferences.
With Powell’s term ending in May and the criminal investigation still active, Trump’s patience appears exhausted.
The debate is no longer about whether the project was mishandled.
The question Trump is asking now is far more serious:
Was it incompetence—or something worse?
