The Trump administration again uses the Federal Reserve headquarters renovation as an "attack": The White House accuses Powell of "serious mismanagement"

The Trump administration once again "attacked" Federal Reserve Chairman Jerome Powell over the controversial renovation project at the Federal Reserve headquarters.

On Thursday, July 10, Eastern Time, Russell Vought, the Director of the Office of Management and Budget, released a letter he wrote to Powell, stating that Powell had "mismanaged severely" and implying that he misled Congress regarding the extravagant renovation project at the Federal Reserve headquarters, demanding more information about the project.

Vought stated in the letter,

"The President is deeply concerned about your management of the Federal Reserve system. Not only have you failed to correct the financial direction of the Federal Reserve, but you have also stubbornly proceeded with an extravagant renovation of the headquarters in Washington, D.C."

In a post on social media where he shared a screenshot of the full letter, Vought pointed out that the cost of the Federal Reserve's renovation project may be only $500 million less than the cost of renovating the Palace of Versailles. His post stated:

"The renovation project at the Federal Reserve currently costs as much as $2.5 billion, approximately $700 million more than the initial cost. These projects include a terrace rooftop garden, water features, VIP elevators, and high-quality marble. The cost per square foot is $1,923, which is double the cost of renovating a typical historic federal government building. In today's dollar value, the renovation cost of the Palace of Versailles is $3 billion."

Earlier in Vought's remarks, President Trump once again urged Powell to cut interest rates on Thursday. Two days earlier, Trump had also brought up the issue of the Federal Reserve's renovations. He stated during a Cabinet meeting at the White House that if Powell indeed misled Congress regarding the Federal Reserve headquarters renovation project as critics have claimed, he should resign immediately.

On Tuesday, Trump further criticized Powell, calling him "terrible" and stating that deceiving Congress would be a legitimate reason for his swift departure. "Then he should resign immediately. We should find someone willing to cut interest rates to replace him."

Last week, Bill Pulte, the Director of the Federal Housing Finance Agency (FHFA) appointed by Trump, called for Congress to investigate Powell, claiming that his testimony in the Senate regarding the Federal Reserve headquarters renovation plan was "deceptive." He said:

"I request Congress to investigate Chairman Powell's political bias and his false testimony in the Senate, which constitutes grounds for removal."