President Trump is considering removing up to three Federal Reserve governors, including former Chair Jerome Powell and governors Lisa Cook and Michael Barr, citing a watchdog report on costly Fed headquarters renovations. However, recent court rulings suggest removal attempts would face significant legal obstacles and could backfire by encouraging the governors to remain and litigate. The IG report found no criminal misconduct or administrative wrongdoing, weakening Trump's legal position.
President Trump is considering seeking removal of three Federal Reserve governors—Jerome Powell, Lisa Cook, and Michael Barr—citing a headquarters renovation that cost roughly $1 billion more than planned. However, recent court rulings suggest legal challenges to remove them would face significant obstacles and could take months to resolve. An inspector general report found no criminal misconduct or basis for charges related to the renovation spending.