White House accuses Powell of mismanaging the Fed, citing renovation

White House budget chief Russell Vought on Thursday accused Federal Reserve Chair Jerome Powell of mismanaging the central bank’s budget during renovations, adding to President Trump’s criticism of Powell.

Vought, in a letter to Powell, said Trump is “extremely troubled” that he has “plowed ahead with an ostentatious overhaul” of the Fed’s headquarters in Washington, D.C. He said that costs of the renovations have reached about $700 million, and he pointed out the addition of “VIP dining rooms” and “premium marble” and that each employee will get an average of 512 square feet, which is above the Office of Management and Budget's (OMB) recommended 150 square feet.

Vought noted that Powell testified before Congress last month and denied the expensive additions were part of the renovations. He highlighted that Powell said some of factors of the renovations from the 2021 plan were no longer in place, which Vought said “reveals that the project is out of compliance with the approved plan with regard to major design elements.”

The OMB instructs agencies to consult with the National Capital Planning Commission (NCPC) on renovations, and Vought pressed Powell on whether the project is in accordance with the same plan the commission approved in 2021.

Other questions he sent to Powell include whether the rooftop garden terrace, private dining rooms, marble features, private elevators and water features are in the plan and if he consulted with the NCPC in making any changes to the plan.

“Unfortunately, Powell's recent testimony to Congress has led to serious questions that now require additional oversight from OMB, in conjunction with the National Capital Planning Commission. Today, I sent the letter below to Chairman Powell to get to the bottom of this largesse,” Vought said on the social platform X.

Trump earlier this week was questioned about accusations that Powell lied to lawmakers about the renovations at headquarters and replied, “Then he should resign immediately.”

“We should get somebody in there who should lower interest rates,” the president said.

Trump has repeatedly bashed Powell, calling him names such as “Too Late” and “numbskull,” and he has been publicly critical of the central bank’s decision to hold interest rates steady even as inflation has cooled slightly. 

The Fed chair has defended not reducing rates as the central bank waits to see how the president’s whipsaw trade policies and tax cut plans affect a sturdy U.S. economy.

White House deputy chief of staff James Blair also on Thursday said he has “grave” concerns about allegations that Powell wasn’t honest in his testimony about the renovation project at headquarters.

And Federal Housing Finance Agency Director Bill Pulte recently piled on the criticism of Powell, calling for his resignation and claiming the Fed is hurting the U.S. economy by keeping its baseline interest rate at a moderate level.