Trump official criticizes Fed chief Jerome Powell for “ostentatious” office renovations, as Trump takes aim over interest rates
The ongoing feud between President Trump and Federal Reserve Chair Jerome Powell escalated on Thursday, as a top Trump administration official accused Powell of leading an extravagant office renovation project that may be in violation of the law. Office of Management and Budget Chair Russell Vought penned a letter expressing the President’s concerns over Powell’s management of the Federal Reserve System.
The letter comes after months of criticism from President Trump regarding the Fed’s decision to maintain interest rates, rather than implementing rate cuts. The President has been vocal in his calls for Powell to step down from his position, even going as far as to refer to him as a “numbskull” and suggesting that he may try to fire him. However, federal law stipulates that the Fed chair can only be removed for specific misconduct or performance issues.
Vought’s letter specifically takes aim at the Federal Reserve’s office renovation project in Washington, D.C. The plans for the project reportedly included luxurious features such as rooftop terrace gardens, VIP dining rooms, premium marble, and more. Vought raised concerns about whether the Fed sought proper approval for these renovations from the government commission overseeing federal building projects in the D.C. area.
In response to these allegations, Powell testified before the Senate last month, refuting claims of extravagant additions to the office space. He maintained that any new marble was necessary to replace old, broken marble, and denied the existence of special elevators, water features, or rooftop gardens. Vought’s letter suggested that Powell’s testimony may indicate non-compliance with the approved renovation plan.
The Federal Reserve, as an independent institution, has the authority to make decisions regarding its office spaces in Washington. Previous budget reports have acknowledged increased costs for the renovation project due to rising raw materials expenses. Bill Pulte, the Trump-nominated head of the Federal Housing Finance Agency, also accused Powell of providing deceptive testimony to the Senate regarding the office project.
President Trump weighed in on the controversy during a recent Cabinet meeting, suggesting that Powell should resign if the allegations are true. He reiterated his desire for a Fed chair who will prioritize lowering interest rates. The ongoing conflict between the President and the Federal Reserve highlights the challenges of maintaining independence and accountability within key government institutions.
