The Office of Management and Budget has sent a letter to Federal Reserve Chair Jerome Powell on Thursday accusing him of having "grossly mismanaged the Fed," following testimony regarding the central bank's office headquarters.
"Jerome Powell, AKA 'TOO LATE,' is spending billion renovating the Fed's HQ. In his recent testimony, he slipped up and revealed he might also be violating the law. The Trump Administration is demanding answers, and we're going to hold him accountable," the OMB posted on X.
The Trump administration has been at odds with Powell for months over his failure to lower interest rates. President Donald Trump upped the personal attacks this week calling Powell "terrible" and "a very average mentally person." Trump added, "I think he's a very stupid person actually."
The HQ renovation, which is now $700 million over budget, included rooftop terrace gardens, VIP dining rooms and elevators, water features, and premium marble. Yet, during his June 25 testimony before the Senate Banking Committee, Powell denied any of the opulent additions were part of the project and failed to get the plans approved by the National Capital Planning Commission.
OMB Director Russell Vought wrote in his letter, "The President is extremely troubled by your management of the Federal Reserve System. Instead of attempting to right the Fed's fiscal ship, you have plowed ahead with an ostentatious overhaul of your Washington D.C. headquarters."
"Your testimony raises serious questions about the project's compliance with the National Capital Planning Act," Vought continued. "Although minor deviations from approved plans may be inevitable, your testimony appears to reveal that the project is out of compliance with the approved plan with regard to major design elements.
"This would bring the project outside of the NCPC's approval and thus in violation of the NCPA, and require the Fed to immediately halt construction and obtain a new approval from the NCPC before proceeding."
The OMB gave Powell one week to respond to a litany of concerns about his testimony and the heaquarters' remodeling.
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.