OMB Director Vought to Inspect Federal Reserve Headquarters

The Office of Management and Budget Director Russell Vought is planning on conducting a site visit of the Federal Reserve Headquarters to inspect the controversial $2.5 billion renovation project that has spiraled drastically over budget.

“We have substantial concerns with how he’s [Fed Chair Jerome Powell] managed the Fed, not just from an interest rate policy but with regard to cost overruns. And that’s something we’re looking at in conjunction with the National Capitol Planning Commission which has new fantastic members. We’re trying to get a site visit right now and get over there,” Vought told reporters outside the White House on Thursday.

“I want to walk around the building with the other members and get a sense for why the overrun is happening. There are inconsistencies between the plan that was submitted to the commission originally, and the statements the chairman made before the financial services committee,” he added.

The renovations, which are now $700 million over budget, include rooftop terrace gardens, VIP dining rooms and elevators, water features, and premium marble. During Powell’s 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 Capitol Planning Commission.

The OMB sent a letter to Powell last week accusing him of having “grossly mismanaged the Fed,” following testimony of the central bank’s office headquarters.

“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,” Vought wrote in his letter.

The Trump administration has been at odds with Powell for months over his failure to lower interest rates and many have speculated that President Donald Trump is looking to use the headquarters fiasco as a reason to fire him. The Fed has denied any wrongdoing and asserts the White House lacks any legal authority over its facilities.

Peter Wallison, a constitutional scholar and senior fellow at the American Enterprise Institute told Barrons that over spending on a remodel isn’t a case for termination.

“An error of this kind would not be grounds for removal. If it were, then the Fed chair could be removed for bad economic results, which would be tumultuous.”