President Donald Trump‘s funds chief on Thursday mentioned that Federal Reserve Chairman Jerome Powell “has grossly mismanaged the Fed” and recommended he had misled Congress a few dear 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 warfare of phrases towards Powell.
Trump has repeatedly known as on the Fed chairman to chop rates of interest, with out success. He reportedly has thought-about firing Powell and, extra not too long ago, publicly naming the chairman’s alternative months sooner than the top 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 current choice strongly recommended that Federal Reserve board members have particular safety from being fired by a president.
Development on the Marriner S. Eccles Federal Reserve constructing in Washington, DC, US, on Wednesday, June 25, 2025.
Al Drago | Bloomberg | Getty Photographs
“Whereas persevering with to run a deficit since FY23 (the primary time within the Fed’s historical past), the Fed is approach over funds on the renovation of its headquarters,” Vought wrote in a publish on the social media website X.
“Now as much as $2.5 billion, roughly $700 million over its preliminary value,” Vought wrote. “The associated fee per sq. foot is $1,923–double the price for renovating an atypical historic federal constructing. The Palace of Versailles would have value $3 billion in immediately’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 mission’s compliance with the Nationwide Capital Planning Act, which requires that initiatives just like the Fed headquarters renovation be authorized by the Nationwide Capital Planning Fee,” Vought wrote.
Development on the Marriner S. Eccles Federal Reserve constructing in Washington, DC, US, on Wednesday, June 25, 2025.
Al Drago | Bloomberg | Getty Photographs
“The plans for this mission known as for rooftop terrace gardens, VIP personal eating rooms and elevators, water options, premium marble, and far more,” he wrote.
However Powell, in his testimony, mentioned, “There isn’t any VIP eating room. There isn’t any new marble. There aren’t any particular elevators. There aren’t any new water options. There isn’t any beehives and there isn’t any roof terrace gardens,” Vought wrote.
“Though minor deviations from authorized plans could also be inevitable, your testimony seems to disclose that the mission is out of compliance with the authorized plan with regard to main design parts,” Vought wrote.
“This could carry the mission exterior of the NCPC’s approval and thus in violation of the NCPA, and require the Fed to instantly halt development and acquire a brand new approval from the NCPC earlier than continuing any additional.”
The letter requested Powell to reply to 11 questions concerning the renovation mission inside seven enterprise days.
The Federal Reserve declined to touch upon Vought’s letter.
— Further reporting by CNBC’s Jeff Cox
