A top White House official launched a new broadside against Federal Reserve Chair Jerome Powell Thursday, accusing him of breaking the law while overseeing a $2.5 billion renovation of the central bank’s headquarters.
It’s the latest and most serious accusation leveled by Donald Trump and his top aides against Powell, who has irked the president by failing to heed his calls to lower interest rates.
Director of the Office of Management and Budget Russ Vought sent a letter to Powell on Thursday accusing him of “an ostentatious overhaul” of the Federal Reserve’s D.C. headquarters, which he said was at least $700 million over budget.
Powell has “grossly mismanaged the Fed,” Vought added in a post on X.
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“While continuing to run a deficit since FY23 (the first time in the Fed’s history), the Fed is way over budget on the renovation of its headquarters,” Vought continued. “These renovations include terrace rooftop gardens, water features, VIP elevators, and premium marble. The cost per square foot is $1,923 – double the cost for renovating an ordinary historic federal building. The Palace of Versailles would have cost $3 billion in today’s dollars!”
Trump has taken a series of public stabs at Powell after returning to office earlier this year, with particular focus on the Federal Reserve’s decision to hold interest rates steady. Trump has spent the last few months handing Powell various nicknames, including “Too Late” for failing to lower rates.
Powell, for his part, has cited the uncertainty caused by Trump’s steep tariffs as the reason for the central bank’s caution.
Despite his public frustration with the Federal Reserve chair, it remains unclear whether Trump has the authority to fire Powell.
In his letter, the most aggressive action taken by the administration so far against Powell, Vought also accuses Powell of misleading Congress about the full cost of his renovation plans in his June 25 testimony before the Senate Banking Committee.
“Your testimony raises serious questions about the project’s compliance with the National Capital Planning Act,” Vought writes. “Although minor deviations from approved plans may be inevitable, your testimony appears to reveal that the project is out of compliance with the approved plan with regard to major design elements.”
The Supreme Court determined in late May that Federal Reserve board members and other central banking officials have special protection from being fired by a president.
Powell has historically stayed out of commenting on his disagreements with Trump, emphasizing that his role is solely to tame inflation.
The Federal Reserve did not respond to a request for comment from NOTUS.
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