- Trump, Powell Clash Over Fed Renovation Spending
- Trump request for Powell resignation
- Vought condemned the alleged luxury embedded in the central bank’s multi-year renovation project
By Grateful Ogunjebe
United States President Donald Trump has taken fresh aim at Federal Reserve Chair Jerome Powell, accusing him of leading an “ostentatious” renovation of the Fed’s Washington headquarters while resisting calls to slash interest rates.
Eko Hot Blog reports that the tension between President Trump and Powell intensified on Thursday after a scathing letter from Office of Management and Budget Director, Russell Vought, surfaced.
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In the letter, Vought condemned the alleged luxury embedded in the central bank’s multi-year renovation project, describing it as excessive and potentially unlawful.
The letter claims that the renovation plans include rooftop terrace gardens, private VIP dining rooms, water features, premium marble, and special elevators—luxuries that critics say send the wrong signal at a time of economic uncertainty.
Vought questioned whether the Federal Reserve made changes to the plans without getting proper approval from the National Capital Planning Commission, the body responsible for overseeing federal projects in the D.C. area.
President Trump, who has repeatedly called on Powell to lower interest rates to stimulate economic growth, was quick to weigh in. “Then he should resign immediately,” Trump told reporters during a cabinet meeting. “We should get somebody in it that’s going to lower interest rates.”
Although the Federal Reserve typically enjoys a high level of independence from the White House, Trump’s recent remarks have placed Powell under mounting pressure. The President previously labelled him a “numbskull” and suggested that he may attempt to remove him from office, even though federal law allows a Fed chair to be dismissed only “for cause.”
Fed Chair Powell, during recent testimony before the Senate, rejected the characterisation of the renovation. He insisted that many of the claims were misleading or outdated. “There isn’t any new marble beyond what’s needed to replace broken material. There are no rooftop gardens, no special elevators, no water features,” he told lawmakers.
The Federal Reserve has argued that the buildings undergoing renovation have not been comprehensively updated since the 1930s. It said existing fountains will be repaired, not replaced, and what some critics referred to as “terraces” are merely ground-level lawns.
Still, critics like Bill Pulte, Trump-nominated head of the Federal Housing Finance Agency, accused Powell of giving “deceptive” testimony. Civil groups have also raised transparency concerns, citing potential waste and a lack of oversight.
Analysts say the situation reflects a deeper clash between the White House and the central bank over monetary policy, accountability, and public spending.
With interest rates remaining steady amid inflation fears, Trump’s economic team is clearly applying new pressure on Powell.
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