Trump weighs removing three Fed governors after watchdog report

October 2, 2026 at 12:59 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

President Donald Trump is weighing removal of up to three Federal Reserve governors after a watchdog report found no criminal basis for charges over costly headquarters renovations. The report, released Wednesday, found managerial problems allowed construction costs to jump by about $1 billion. Trump called former Chair Jerome Powell a disaster and asked Attorney General Todd Blanche to review the findings.

Key Facts

The inspector general's report found no basis for criminal charges stemming from the Fed's headquarters renovations.
Construction costs jumped by about $1 billion due to managerial problems at the Fed.
Trump asked Attorney General Todd Blanche to review the inspector general's report.
The Fed is scheduled to announce its latest interest-rate decision on Oct. 28, days before the Nov. 3 midterm election.
Former Fed General Counsel Scott Alvarez said any removal attempt could backfire because all three governors have an incentive to litigate and stay.

Watchdog Report Findings

The inspector general's report released Wednesday found no basis for criminal charges related to the Federal Reserve's headquarters renovations. The report identified managerial problems that allowed construction costs to jump by about $1 billion. President Trump reacted by calling former Chair Jerome Powell a disaster and saying Powell should not be on the Federal Reserve Board. Trump asked Attorney General Todd Blanche to review the inspector general's report, and the U.S. attorney for the District of Columbia is also reviewing it.

Legal Hurdles

Recent court rulings suggest any attempt to remove the governors would face significant legal hurdles. Former Fed General Counsel Scott Alvarez said the Supreme Court allowed Lisa Cook to stay while litigation proceeds, and all three governors have an incentive to litigate and stay. Alvarez said if they all stay while Trump pursues removal, the president would only hurt his own agenda. Legal maneuvers could take months and may persuade the targets to postpone any plans to leave the Fed, as Powell has already done.

Interest Rate Decision

The Federal Reserve is scheduled to announce its latest interest-rate decision on Oct. 28, only days before the Nov. 3 midterm election. The administration faces a deadline in the Lisa Cook case shortly after the vote. Trump's ability to force the Fed to reverse its recent decision to raise interest rates appears limited.