Management and budget director Russell Vert vowed Friday to urge an investigation into renovations on the Federal Reserve building, calling it a “palaces” where costs exist.
In a potential escalation of a feud with President Donald Trump’s Chairman Jerome Powell, Vought told CNBC that an investigation into whether Powell was misleading about the $2.5 billion project has been justified.
“When you go to the country’s mall, you see the construction of this palace… a massive cost overrun of over $2.5 billion. And we want to ensure the facts about the Lages and the extent to which it overruns.” “I think it’s just pointing to the basic mismanagement of the Fed under the chairmanship.”
Mariner SS Eccles Federal Rerment Building on Tuesday, October 24, 2023, during renovations in Washington, DC, USA.
Valerie Plesch | Bloomberg | Getty Images
In a letter issued Thursday, Vought accused Powell of “badly mismanaged the Fed” and misinterpreted Congress about the price and scope of renovations at central bank headquarters in Washington, D.C.
Vought said the Fed had exceeded the project’s budget and misinterpreted the Congressional panel in June. He does not include some of the higher aspects of the renovation, such as the VIP dining area and the rooftop terrace garden, but appears in the specifications of the redesign.
The accusations represent another front in Trump’s ongoing campaign against Powell. Trump accused central bank leaders of politics by not lowering interest rates and called on Powell to resign.
“The problem with Chairman Powell is that he’s late every turn,” Vought said. “It’s time to lower the fees. There’s the problem. But this is about the fact that he systematically mismanaged the Fed, and that’s evident from what we see regarding this monster, this Palace of Versailles, the national mall.”
New board member overseeing the Fed projects
The renovation project is under the jurisdiction of the National Capital Planning Commission. Recently, Trump has appointed three new members to the board. Everyone is directly related to the White House. White House secretary James Blair, deputy director of White House, and Will Schaaf, new chairman of OMB policy analyst Stuart Revenbach.
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Source: National Capitol Planning Committee
Powell said politics was not involved in the Fed rate decision. He and his colleagues have held a significant overnight borrowing rate since December, but the market primarily expects a cut to be underway in September rather than the Fed’s July meeting.
A recent Supreme Court decision said the president could not freely fire Fed officials. But accusations regarding the renovation of the building could help Trump build a lawsuit dismissing Powell for the cause.
In any case, Powell’s term as a chair expires in May 2026, but he can remain governor until 2028. Trump nominated Powell for his first term in November 2017 for the chairman.
During an interview with CNBC, Vought did not directly address questions about whether the building renovation claims were related to Powell’s position on interest rates.
“This certainly has to do with the Fed’s financial mismanagement. [interest rates] He said. We have a new commissioner on the National Capital Planning Commission, which asks very difficult questions. ”
CNBC.com has reached out to the Fed for comment.
Construction of the Marriner S. Eccles Federal Rervers Building in Washington, DC, Washington, DC, USA on Wednesday, June 25th, 2025.
Al Drago | Bloomberg | Getty Images
