President Trump and his allies have accused the Federal Reserve chair, Jerome Powell, of misleading Congress in what some legal scholars worry is a prelude to seeking his removal.
The Federal Reserve took steps on Friday to defend itself against accusations by President Trump and his allies that Jerome H. Powell, the Fed chair, mismanaged renovations at the central bank’s headquarters and then lied to Congress about those plans.
The new line of attack, after Mr. Trump aimed a barrage at the Fed’s reluctance to lower borrowing costs, has raised alarm that the White House is trying to lay the groundwork to fire Mr. Powell for cause.
In an update to its website late Friday, the central bank laid out details intended to support Mr. Powell’s statements to lawmakers regarding the project, which kicked off in 2021 and is estimated to be $700 million over budget at around $2.5 billion.
The extent of the renovations and their swelling cost have spawned intense criticism from both the White House and a number of leading Republicans, who have taken issue with luxury features in an initial plan, including rooftop garden terraces and marble finishings.
Mr. Trump said on Friday that he was not planning to fire Mr. Powell, despite saying the Fed chair was doing a “terrible job.” But legal experts warned that the latest front in the White House’s attacks on the central bank could potentially be pursued as an avenue to remove Mr. Powell as chair before his term expires in May.
“We can’t ignore context when we are looking at these accusations,” said Kathryn Judge, a financial regulation expert at Columbia Law School. “What they’re trying to do is build up a public case and to discredit him.”
