Topline
Office of Management and Budget Director Russell Vought accused Federal Reserve Chair Jerome Powell on Thursday of an “ostentatious” overhaul of the independent agency’s fiscal headquarters amid an increasingly aggressive campaign by President Trump to get Powell to step down from the job.
Federal Reserve Chairman Jerome Powell testifies during the Senate Banking, Housing and Urban … More
CQ-Roll Call, Inc via Getty ImagesKey Facts
Vought accused Powell of spearheading a project that is $700 million over budget and modifying the renovation plan without proper approval from the National Capital Planning Commission.
Vought made the accusation by pointing to Powell’s testimony before the Senate Banking Committee in June that certain luxury features, including water features, new marble and roof terrace gardens, had been removed from the plans, writing that his “testimony appears to reveal that the project is out of compliance with the approved plan.”
Vought’s letter asks Powell to answer a series of questions about the renovations within seven business days, including whether the features that have been a point of contention are still part of the final renovation plans.
The multi-billion-dollar project that began in 2019 has become the latest attack line from the White House as it ramps up its criticism of Powell in an effort to force his resignation.
Renovations at the central bank were initially estimated to cost $1.9 billion, but had ballooned to nearly $2.5 billion by 2023, The Wall Street Journal reported, citing budget documents that cited “significant increases” in the cost of steel, cement, wood and other materials that “far exceed standard cost escalations.”
Tangent
Former Department of Government Efficiency chief Elon Musk also called the renovations at the Fed headquarters “an eyebrow-raiser” in an interview with reporters in May.
Key Background
Trump on Tuesday called for a probe into the renovations and Powell’s previous statements to the Senate committee during a cabinet meeting, repeating his wishes for Powell to resign from his post immediately. Trump, who appointed Powell in 2017, has repeatedly accused him of being “too late” to lower interest rates since Trump took office. Trump has reportedly started to eye replacements for Powell should he resign before his term expires in May of next year and could make an early announcement as soon as September, according to The Wall Street Journal.
What To Watch For
Republican senators have begun to speak out against Powell, with at least three—Sen. Bernie Moreno, R-Ohio, Sen. Tommy Tuberville, R-Ala., and Sen. Rick Scott, R-Fla.—calling for him to step down. Others, however, have remained neutral in the feud and expressed the need for the Federal Reserve to maintain its independence, including Sen. John Kennedy, R-La., who told Axios “I don’t think a bunch of politicians ought to be telling the Federal Reserve how to regulate.”
Further Reading
How Soon Could Trump Replace Fed Chair? What To Know As He Reportedly Considers Powell Successor (Forbes)
The Fed Opts Not To Cut Interest Rates Again—Even As Trump Ups Attacks On Fed Boss Powell (Forbes)
Trump Says Fed Chair Powell’s Termination ‘Cannot Come Fast Enough’ (Forbes)
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