President Donald Trump said on Monday that he is still considering whether to remove Federal Reserve Chair Jerome Powell, escalating his criticism of the central bank leader and suggesting a decision could come as early as January.
“I would love to fire him — maybe I still might,” Trump said, adding that he would announce his plans for the Fed chairmanship “at the right time” and that “there’s still plenty of time.”
The remarks were made during a meeting with Israeli Prime Minister Benjamin Netanyahu at Trump’s Mar-a-Lago estate in Florida and were broadcast live on Newsmax and the Newsmax2 free streaming platform.
Trump accused Powell of “gross incompetence,” focusing heavily on the rising costs of a renovation project involving Federal Reserve facilities. The upgrades concern two nearly century-old Fed buildings that had never undergone a full renovation. While the project was initially budgeted at $1.9 billion, costs have increased significantly, with most public estimates placing the final figure closer to $2.5 billion. Trump claimed the total could ultimately exceed $4 billion.
According to the president, his administration has discussed the possibility of legal action against Powell over the cost overruns. “We’re thinking about bringing a suit against Powell for incompetence,” Trump said, arguing that the buildings are not extraordinary enough to justify such expenses. He described the project as having “the highest price of construction per square foot in the history of the world.”
“Gorgeous monuments are built for a much smaller price,” Trump said, reiterating that the renovation was “his baby” and blaming Powell directly. “It’s gross incompetence against Powell… the guy’s just incompetent.”
Powell was first appointed as Federal Reserve chair by Trump in 2018 and was later reappointed by President Joe Biden in 2022. His current term is set to expire in May.
In contrast, Trump highlighted a ballroom project his administration is undertaking, claiming it demonstrates effective leadership and fiscal discipline. He said the ballroom—described as a long-desired addition to the White House—is under budget and ahead of schedule.
“I’m doing a magnificent, big, beautiful ballroom that the country has wanted, the White House has wanted for 150 years,” Trump said. He added that the project includes bulletproof glass and a “drone-free roof,” emphasizing that it costs only a fraction of the Fed renovation while being larger and more secure.
Trump also revived his long-standing criticism of Powell’s handling of interest rates, accusing him of being “always too late” to lower rates. He alleged that the Fed chair acted differently before the election, suggesting that rate decisions were politically motivated to help Democratic candidate Kamala Harris.
“He was too early because that was supposed to help get [Kamala Harris] elected,” Trump said, adding that the move “had no impact” and pointing to his victory in all seven swing states.
Despite the harsh rhetoric, Trump said no final decision has been made regarding Powell’s future and stressed that any announcement about Federal Reserve leadership would come later.
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