The White House intensified its attacks on Federal Reserve Chairman Jerome Powell, blasting his plans to renovate the central bank’s headquarters as egregious and comparing it to the Palace of Versailles in France.
The latest broadside by the White House Office of Management and Budget Director Russell Vought could be laying the groundwork for President Trump to fire Mr. Powell for alleged mismanagement or malfeasance. Mr. Vought suggested to reporters that Mr. Powell misled Congress about the cost of the pricey renovation.
“We have substantial questions with the testimony he gave to the Hill in response to questions about the building,” Mr. Vought said of the Fed chair. “He has articulated that there have been material changes to the National Capital Planning proposal that was approved, and so we want to get to the bottom of [his] statements as compared to various parts of the plan.”
On Thursday, Mr. Vought sent a letter to Mr. Powell raising significant questions about the renovation plan, noting the Fed has blown past its budget to renovate the headquarters.
Mr. Vought said the construction costs have now reached $2.5 billion, roughly $700 million over its initial price. He asked the Fed to halt construction on the project and resubmit new plans to the National Capital Planning Commission, which has to approve the renovation.
The Federal Reserve Bank declined to comment.
Mr. Trump has repeatedly demanded that the Fed chair lower interest rates, but Mr. Powell has remained steadfast in his refusal to do so. The president has publicly mused about firing Mr. Powell or at least naming his replacement ahead of his term expiring next spring.
On Friday as he was leaving the White House to head to Texas, Mr. Trump told reporters that Mr. Powell was doing “a terrible job” and interest rates should be “3 points lower.”
The Supreme Court in a recent decision ruled that Federal Reserve board members have special protections from being fired by a president. The court held that a board member could only be fired “for cause,” suggesting malfeasance or neglect of duty.
Mr. Vought’s comments suggest the White House is trying to make that case.
“This is about the renovations that are occurring to the extent to which they are largesse,” he said, noting the project’s $2.5 billion price tag. “You look at the actual Palace of Versailles. If you were to update those figures for modern numbers it would be $3 billion. The Capitol was about $2.5 billion from all its different buildings from the founding of the country to 1982.”
“If you look at the biggest buildings across the world, and this is approaching that level, it would probably qualify as one of the eighth wonders of the ancient world if you were able to go back that far,” Mr. Vought continued.
The renovation project is aimed at modernizing the Marriner S. Eccles building, which has served as the Fed’s headquarters since 1937. Fed officials say the projection, which began in 2021, will modernize the building to current safety and security standards, as well as enable the Fed to consolidate most of its staff into one campus and reduce off-site leases.
Though parts of the building were updated in the early 2000s, this is the first full renovation in nearly 90 years.
Mr. Vought said in congressional testimony earlier this year that the renovations called for VIP dining rooms, rooftop terraces gardens, premium marble, elevators and more.
In testimony last month before the Senate Banking Committee, Mr. Powell denied reports of the luxurious updates as “misleading and inaccurate.”
“There’s no VIP dining room. There’s no new marble. There are no special elevators,” Mr. Powell said. “There are no new water features. There’s no beehives, and there’s no roof terrace gardens.”
