President Donald Trump‘s finances chief on Thursday mentioned that Federal Reserve Chairman Jerome Powell “has grossly mismanaged the Fed” and steered he had misled Congress a few expensive and “ostentatious” renovation of the central financial institution’s headquarters.
The broadside by Workplace of Administration and Funds Director Russell Vought opened up a brand new entrance in Trump’s struggle of phrases in opposition to Powell.
Trump has repeatedly known as on the Fed chairman to chop rates of interest, with out success. He reportedly has thought of firing Powell and, extra lately, publicly naming the chairman’s substitute months sooner than the tip of Powell’s time period subsequent spring.
Vought’s letter raises the query of whether or not Trump will search to take away Powell for trigger, not less than ostensibly.
However the Supreme Court docket in a latest determination strongly steered that Federal Reserve board members have particular safety from being fired by a president.
Building on the Marriner S. Eccles Federal Reserve constructing in Washington, DC, US, on Wednesday, June 25, 2025.
Al Drago | Bloomberg | Getty Pictures
“Whereas persevering with to run a deficit since FY23 (the primary time within the Fed’s historical past), the Fed is manner over finances on the renovation of its headquarters,” Vought wrote in a submit on the social media web site X.
“Now as much as $2.5 billion, roughly $700 million over its preliminary price,” Vought wrote. “The fee per sq. foot is $1,923–double the associated fee for renovating an abnormal historic federal constructing. The Palace of Versailles would have price $3 billion in at present’s {dollars}!”
Vought’s tweet linked to a letter he despatched Powell that referenced the Fed boss’ June 25 testimony earlier than the Senate Banking Committee.
“Your testimony raises severe questions concerning the challenge’s compliance with the Nationwide Capital Planning Act, which requires that tasks just like the Fed headquarters renovation be permitted by the Nationwide Capital Planning Fee,” Vought wrote.
Building on the Marriner S. Eccles Federal Reserve constructing in Washington, DC, US, on Wednesday, June 25, 2025.
Al Drago | Bloomberg | Getty Pictures
“The plans for this challenge known as for rooftop terrace gardens, VIP non-public eating rooms and elevators, water options, premium marble, and far more,” he wrote.
However Powell, in his testimony, mentioned, “There is not any VIP eating room. There is not any new marble. There aren’t any particular elevators. There aren’t any new water options. There is not any beehives and there is not any roof terrace gardens,” Vought wrote.
“Though minor deviations from permitted plans could also be inevitable, your testimony seems to disclose that the challenge is out of compliance with the permitted plan with regard to main design components,” Vought wrote.
“This could carry the challenge outdoors of the NCPC’s approval and thus in violation of the NCPA, and require the Fed to right away halt building and acquire a brand new approval from the NCPC earlier than continuing any additional.”
The letter requested Powell to answer 11 questions concerning the renovation challenge inside seven enterprise days.
The Federal Reserve declined to touch upon Vought’s letter.
— Further reporting by CNBC’s Jeff Cox
