Trump Budget Chief Criticizes Fed Chair Powell's Management of Central Bank

Criticism of Federal Reserve Chairman

President Donald Trump's budget chief stated on Thursday that Federal Reserve Chairman Jerome Powell has mismanaged the Federal Reserve. He also suggested that Powell may have provided inaccurate information to Congress regarding the renovation of the central bank's headquarters.

The comments from Office of Management and Budget Director Russell Vought add to ongoing public disagreements between President Trump and Chairman Powell. President Trump has repeatedly requested that the Federal Reserve lower interest rates. He has also reportedly considered replacing Powell before the end of his term.

Potential Removal of Powell

Vought's letter raises the issue of whether President Trump might seek to remove Powell for cause. However, a recent Supreme Court decision indicated that Federal Reserve board members have certain protections against removal by the president.

Renovation Costs and Compliance Questions

"While continuing to run a deficit since FY23 (the first time in the Fed's history), the Fed is over budget on the renovation of its headquarters," Vought wrote on the social media site X. "Now up to $2.5 billion, roughly $700 million over its initial cost. 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!"

Vought's post referenced a letter he sent to Powell, which cited Powell's June 25 testimony before the Senate Banking Committee. Vought wrote:

"Your testimony raises serious questions about the project's compliance with the National Capital Planning Act, which requires that projects like the Fed headquarters renovation be approved by the National Capital Planning Commission."

Discrepancies in Project Features

"The plans for this project called for rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble, and much more," Vought wrote.

However, Powell stated in his testimony:

"There's no VIP dining room. There's no new marble. There are no special elevators. There are no new water features. There's no beehives and there's no roof terrace gardens."

Vought responded:

"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."