“It’s Jerome Powell’s fault, and he should be forced to resign, IMMEDIATELY! » Donald Trump demanded on September 30 that Jerome Powell leave the Fed's board of governors, the day the institution's inspector general (its independent internal controller) published his report on the renovation of the headquarters in Washington. The document notes management failures and does not contain any criminal offense.
We already reported in August 2025 the threat of Trump's prosecution on this same site. Powell left the Fed chair in May 2026, but he still serves on the board. Even without the presidency, Powell remains a voice on the rate-setting board, and every Fed decision ripples through bitcoin.
Fed Inspector General Report: Failures, No Crime
The approved budget for the project increased from $1.317 billion in February 2020 to $2.381 billion in December 2024, according to Fox Business, which cites the report. The inspector general admits legitimate increases (materials, labor, asbestos, contaminated soil). He also points to poor project management, with four lots awarded without sufficient competition.
The council did not obtain an estimate from the site manager until January 2026, three and a half years after the start of work, when more than $2 billion in contracts had already been awarded. As of July 2026, no guaranteed maximum price (a contractual cost cap) has yet been set, according to Investing.com.
On the criminal aspect, the text is clear. The inspector general writes that he found “at no time” reasonable grounds to believe that a violation of federal criminal law had occurred. He also does not find any administrative fault.
Trump responded on Truth Social that Powell should resign or face legal action, according to Benzinga. He predicts a final bill of 3.5 to 4 billion dollars and says he would have carried out the work for 25 million. He also asked Attorney General Todd Blanche to review the report.
Jerome Powell, whose term as governor runs until January 2028, had not made any public statements spotted at the time of writing. He said he wanted to stay on the board until the investigations were closed. That of the Ministry of Justice, opened in January 2026, was closed in April, according to Axios.
Can we force a Fed governor to leave? What the law says
The law only allows the removal of a governor “for cause”. On June 29, 2026, in the case Trump v. Lisa Cook, the Supreme Court upheld, by 5 votes to 4, the injunction that blocked the dismissal of this governor. Chief Justice John Roberts wrote the decision, which found the dismissal “erroneous and void” for lack of procedure, according to CNBC.
According to the Brookings Institution's analysis, the Court requires a substantial motive, linked to the seriousness of the misconduct and its relationship to the governor's duties. It would also check whether the motive serves as a pretext to influence monetary policy. The majority expressly cites the Fed's appearance of independence.
Cook was entitled to an explanation of the elements withheld, a means to respond and a deadline. There is no indication at this stage that a procedure of this type targets Powell: Trump is demanding a resignation and a review by the Justice Department. A reason taken from a report that rules out criminal wrongdoing might struggle to pass this test, but no court has decided the Powell case.
Rates, bitcoin and independence of the Fed: what the markets are saying
The August PCE, the Fed's preferred inflation index, came out on September 30 at 3.4% year-on-year (3.7% expected) and 3.0% excluding energy and food (3.3% expected). After this publication, the CME FedWatch tool gave a 37% chance of a 25 basis point increase in October, compared to 62% for a status quo, according to Decrypt.
The ten-year US Treasury yield, the rate at which the State borrows, was around 5.25%, among its highest in almost twenty years according to the same source. Bitcoin touched $85,599 before returning to $84,376 during this session.
These statements date from September 30 and do not measure the reaction to Trump's call: no numerical data allows at this stage to attribute a movement in rates, dollars or bitcoin to this message. The debate on the independence of the Fed, however, opens in an already tense bond market, and a Supreme Court which kept Lisa Cook in office by five votes to four on June 29.
