Director Vought Calls Out Powell for ‘Mismanagement’ of the Fed

Just days after President Trump again called for the resignation of Federal Reserve Chair Jerome Powell over a proposed $2.5 billion renovation to the Federal Reserve headquarters, Office of Management and Budget (OMB) Director Russell Vought wrote a letter to Powell over “mismanagement” of the Fed. 

“Chairman Jerome Powell has grossly mismanaged the Fed,” said Vought in a social media post accompanying his letter. “While continuing to run a deficit since FY23 (the first time in the Fed’s history), the Fed is way over budget on the renovation of its headquarters. Now up to $2.5 billion, roughly $700 million over its initial cost. These renovations include terrace rooftop gardens, water features, VIP elevators, and premium marble. The cost per square foot is $1,923—double the cost for renovating an ordinary historic federal building. The Palace of Versailles would have cost $3 billion in today’s dollars!” 

According to the New York Post, the projected renovations by the Fed have risen by 30% from its original estimate of $1.9 billion. 

Trump has repeatedly called on the Fed Chair to cut interest rates, and Vought’s letter questions whether Trump will seek to remove Powell from his role. 

Powell had been accused of lying to Congress after he denied that the $2.5 billion renovation of the Fed’s D.C. headquarters will load the facility with lavish amenities. 

Also on Thursday, White House Deputy Chief of Staff James Blair said he had concerns over allegations that Powell was not truthful in his testimony about the cost of the Fed headquarters’ renovation project. 

“Today I expressed my grave concern with the public allegations by others that Federal Reserve Chairman Powell was not honest with the Senate Banking Committee in his late June testimony about design features of the Federal Reserve’s Headquarters Renovation Project,” said Blair via social media.  

The President does not have direct control over the Federal Reserve’s policy decisions, but does have influence. The President can nominate and appoint members of the Federal Reserve Board, including the Fed Chair, which can influence the overall direction of the Fed, and can also voice their opinions about monetary policy. The President selects one member of the Board of Governors to serve as Chair of the Board, who also serves as the Federal Open Market Committee (FOMC) Chair. 

The FOMC, which makes the actual monetary policy decisions, is comprised of all seven governors and five of the 12 regional Federal Reserve Bank Presidents. While the chair has one vote like the other governors, the structure is designed to prevent one individual, including the president, from dictating decisions and policies. Trump appointed Powell as head of the Federal Reserve during his first term in 2018, with his term ending in May 2026. 

The Federal Reserve System performs five general functions to promote the effective operation of the U.S. economy: 

• To promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy; 

• Promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad; 

• Promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole; 

• Fosters payment and settlement system safety and efficiency through services to the banking industry and the U.S. government that facilitate U.S.-dollar transactions and payments; and 

• Promotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and the administration of consumer laws and regulations. 

“Your testimony raises serious questions about the project’s compliance with the National Capital Planning Act, which requires that projects like the Fed headquarters renovation be approved by the National Capital Planning Commission,” Vought wrote in the letter. “The plans for this project called for rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble, and much more.” 

Blair also raised the point about the National Capital Planning Commission (NCPC), the agency that approved the Fed HQ renovations in September of 2021. 

“Further, his suggestion during testimony that features described in public reports as excessive & opulent are no longer in the plans leads me to conclude the project is not in alignment with plans submitted to & approved by the National Capital Planning Commission in 2021,” continued Blair via X. 

Established by Congress in 1924, the NCPC is the federal government’s central planning agency for the National Capital Region. Through planning, policymaking, and project review, NCPC protects and advances the federal government’s interest in the region’s development. The Commission provides overall planning guidance for federal land and buildings in the region by reviewing the design of federal and certain local projects, overseeing long-range planning for future development, and monitoring capital investment by federal agencies. 

Blair followed up: “At a time when the Fed is running an operating deficit, maintains high interest rates, and is receiving significant public scrutiny, one has to wonder whether the so-called ‘Taj Mahal near the National Mall’ project is in the best interests of the board & the public it serves.” 

Vought’s letter asked Powell to respond to 11 very specific questions about the renovation project within seven business days, including: 

• Is the Constitution Avenue project proceeding in accordance with the plan that the NCPC approved in September 2021? 

• If not, what specific changes have been made to the plan since September 2021? 

• How do you account for the discrepancies between your June 25, 2025 testimony and the NCPC-approved plan? 

• Were you aware pf the NCPC-approved plan when you testified on June 25? 

• What features that were described in the NCPC-approved plans have been retained and what features have been removed? 

• Are the rooftop garden terraces described in Section 3.12.9 of your final NCPC submission still planned? 

• Are the private dining rooms on Level 4 described at pages 30 and 37 of your final submissions still planned? 

• Are the marble features described at pages 33, 40 and 78-79 of your final submission still planned? 

• Is the extension of the private elevator to the dining suite described at page 37 of your final submission still planned? 

• Are the water features described at page 116 and 126 of your final NCPC submission still planned? 

• Did you consult with NCPC in making any changes to the construction plan? If so, please provide a summary of those communications, and whether the NCPC approved of any changes. 

Vought gave a deadline of seven days for replies from Powell on the 11 questions.