President Donald Trump said Tuesday that the Justice Department would not end its investigation into Federal Reserve Chairman Jerome Powell over cost overruns tied to renovations at the central bank’s headquarters, even as the inquiry threatens to complicate his effort to install a successor.
During an appearance on CNBC’s Squawk Box, the president was asked whether he would consider ending the DOJ investigation to expedite the nomination of Kevin Warsh, his pick to replace Powell as chairman of the Federal Reserve Board of Governors. Trump defended the investigation, saying it was important to know how the cost overruns happened under the watch of Powell, who Trump referred to by the nickname “Too Late.”
Recommended Stories
“I can’t imagine that ‘Too Late’ is making money on construction,” Trump said. “I can’t, but it’s possible, but we have to find out how the job that should have cost $25 million is costing billions and billions of dollars.”
Powell’s term as chairman of the Fed Board of Governors ends on May 15. Trump has spent months criticizing him for refusing to cut interest rates and the cost overruns at the Federal Reserve.
“We have to find out why a small building cost $4 billion and it’s not finished, by the way,” Trump told CNBC.
The buildings at the center of the renovation controversy are the Eccles Building and a neighboring facility on Constitution Avenue near the National Mall. Both had an estimated budget of roughly $1.9 billion in 2023, but by 2025, those costs had risen to about $2.5 billion
Powell has rejected Trump’s claim of wrongdoing but has said the initial cost estimates were inaccurate. The Fed chairman, however, has argued that the entire renovation has been transparent and public.
THE QUESTIONS KEVIN WARSH WILL FACE DURING HIS CONFIRMATION HEARING
“We do take seriously our responsibility as stewards of the public’s money,” Powell said during a congressional hearing last year.
Trump’s comments about Powell came as Warsh was set to appear before the Senate banking committee for a confirmation hearing. Sen. Thom Tillis (R-NC), a senior member of the banking panel, has vowed to block Trump’s Fed nominees until the DOJ ends its investigation into Powell.
Zach Halaschak contributed to this report.
