Trump and the Fed Chair Jerome Powell have been at loggerheads for a while. Now it’s all coming to a head.
And now the Trump administration leveled up attacks on the Federal Reserve.
White House Questions Federal Reserve’s Costly Renovation
The White House escalated its scrutiny of Federal Reserve Chairman Jerome Powell on Thursday, with Office of Management and Budget Director Russell Vought criticizing the central bank’s $2.5 billion headquarters renovation as excessive, likening it to the opulent Palace of Versailles.
Vought’s remarks, which suggest potential mismanagement, align with President Donald Trump’s push for fiscal accountability, as he told reporters Friday that Powell is doing “a terrible job” and interest rates should be “3 points lower.”
Vought’s letter to Powell demanded a halt to the project, citing a $700 million cost overrun from the initial budget, and called for resubmission to the National Capital Planning Commission.
The Trump administration’s focus on curbing wasteful spending highlights its commitment to ensuring taxpayer dollars are used responsibly.
Renovation Costs Spark Accountability Debate
Vought raised concerns about Powell’s congressional testimony, stating:
“We have substantial questions with the testimony he gave to the Hill in response to questions about the building.”
He noted that the Fed’s renovation of the Marriner S. Eccles building, which began in 2021, has ballooned to $2.5 billion, nearing the modern-equivalent cost of Versailles ($3 billion) and matching the Capitol’s historical construction costs.
Vought previously claimed the project included lavish features like VIP dining rooms and rooftop terraces, though Powell denied these in Senate Banking Committee testimony, calling such reports “misleading and inaccurate” and clarifying, “There’s no VIP dining room. There’s no new marble. There are no special elevators.”
Balancing Modernization with Fiscal Responsibility
The Federal Reserve, which declined to comment, maintains that the renovation, the first comprehensive update since 1937, aims to modernize the Eccles building to meet current safety and security standards while consolidating staff to reduce off-site leases.
Despite a Supreme Court ruling affirming protections for Fed board members, requiring “for cause” dismissal such as malfeasance, Vought’s critique suggests the Trump administration is exploring grounds for accountability.
“This is about the renovations that are occurring to the extent to which they are largesse,” Vought said, emphasizing the project’s scale.
