The White House accused Federal Reserve Chair Jerome Powell of 'gross mismanagement' of a renovation described as 'lavish' for the central bank's headquarters in Washington, representing a new front in the conflict between the U.S. administration and the central bank, according to the Financial Times.
Russell Vought, the Director of the Office of Management and Budget at the White House and an ally of President Donald Trump, posted on the 'X' platform stating that Powell 'has managed the Federal Reserve very poorly', indicating that the renovation cost exceeded the budget by 700 million dollars.
In an accompanying message to the post, Vought wrote: 'The President is extremely upset with your management of the Federal Reserve System, and instead of seeking to rectify the financial situation, you proceeded with an excessively extravagant renovation project for the headquarters in Washington, D.C.'
Vought described the ongoing renovation of the Mariner Eccles building as costing about 2.5 billion dollars, which is roughly equivalent to the cost of the historic Palace of Versailles after adjusting for inflation, considering this evidence of a disconnect from reality at a time when the average American citizen is facing economic hardships.
It is noted that President Donald Trump is launching near-daily attacks on Powell for keeping interest rates unchanged between 4.25 and 4.5 percent since the beginning of the year, calling the Federal Reserve Chair an 'obstinate mule' and 'fool'.
The Federal Reserve insists that it cannot lower interest rates without greater clarity regarding the implications of the trade war that Trump is waging on inflation in the United States.
For their part, Republican figures in Congress criticized the renovation costs, including Tim Scott, the chair of the Senate Banking Committee, who pointed to luxurious elements in the project such as private dining rooms and ornate water fountains.
Billionaire Elon Musk also commented on the project costs, which began in 2021, during his tenure leading what is known as the 'Office of Government Efficiency' under the Trump administration.
Nevertheless, Jerome Powell described media reports about excessive extravagance as 'inaccurate', affirming before Congress that many of the facilities listed in the initial plans - such as private elevators - have been removed.
In contrast, Bill Bolte, head of the Federal Housing Finance Agency and appointed by Trump, said Powell's testimony before Congress was 'misleading' and demanded his resignation, a call that Trump reshared in support.
In his message, Vought stated that Powell's testimony raises 'serious questions' about the project's compliance with the 'National Capital Planning Act', indicating that Powell's statements mean the project has deviated from the plan approved by the National Planning Committee.
