The White House budget director has voiced criticisms against President Trump’s Federal Reserve Chairman, Jerome Powell, regarding how the central bank’s renovation budgets are being handled.
In a letter to Powell, Vought expressed deep concern over the extensive renovations taking place at the Fed headquarters in Washington, DC. He mentioned that the costs could reach around $700 million, adding features like a “VIP Dining Room” and “Premium Marble,” while noting that each employee would average about 512 square feet of space.
Vought highlighted that Powell had testified before Congress last month, denying that such lavish features were part of the renovation. He drew attention to Powell’s assertion that certain elements from a 2021 renovation plan were no longer in play.
The Office of Management and Budget (OMB) has instructed the agency to consult with the National Capital Planning Commission (NCPC) regarding the renovation, requiring Powell to ensure that the project adheres to the original 2021 plan’s approval.
Other inquiries directed at Powell included questions about specific features like the rooftop garden terrace, private dining room, marble elements, and private elevators. Vought also asked if NCPC had been consulted about any plan changes.
He stated, “Unfortunately, Powell’s recent testimony, along with insights from the National Capital Planning Committee, has raised serious questions necessitating further oversight from the OMB. Today, I sent the letter below to Chair Powell to get to the bottom of this major issue.”
This week, when Trump was asked about allegations that Powell had misled lawmakers concerning the renovations, he retorted, “He should resign immediately.” The president further commented on the need for personnel who would take necessary actions to lower interest rates.
Trump has frequently criticized Powell, using terms like “too late” and “Numbskull,” and has openly opposed the central bank’s choice to maintain interest rates even as inflation shows slight signs of cooling.
Powell has defended his position, emphasizing the need to observe the potential impacts of the president’s trade policies and tax cuts on the strong U.S. economy before making any rate cuts.
James Blair, the Deputy Chief of Staff at the White House, reiterated concerns on Thursday about allegations of Powell not being truthful regarding the headquarters renovation project.
Bill Prute, director of the Federal Housing and Finance Agency, also criticized Powell, suggesting that the Fed’s decision to keep baseline rates moderate is detrimental to the U.S. economy.
