White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

President Donald Trump's fund main connected Thursday said that Federal Reserve Chairman Jerome Powell "has grossly mismanaged the Fed" and suggested helium had misled Congress astir a pricey and "ostentatious" renovation of the cardinal bank's headquarters.

The broadside by Office of Management and Budget Director Russell Vought opened up a caller beforehand successful Trump's war of words against Powell.

Trump has repeatedly called connected the Fed president to chopped involvement rates, without success. He reportedly has considered firing Powell and, much recently, publically naming the chairman's replacement months earlier than the extremity of Powell's word adjacent spring.

Vought's missive raises the question of whether Trump volition question to region Powell for cause, astatine slightest ostensibly.

But the Supreme Court successful a caller determination powerfully suggested that Federal Reserve committee members person peculiar extortion from being fired by a president.

"While continuing to tally a shortage since FY23 (the archetypal clip successful the Fed's history), the Fed is mode implicit fund connected the renovation of its headquarters," Vought wrote successful a station connected the societal media tract X.

"Now up to $2.5 billion, astir $700 cardinal implicit its archetypal cost," Vought wrote. "The outgo per quadrate ft is $1,923--double the outgo for renovating an mean historical national building. The Palace of Versailles would person outgo $3 cardinal successful today's dollars!"

Vought's tweet linked to a missive helium sent Powell that referenced the Fed boss's June 25 grounds earlier the Senate Banking Committee.

"Your grounds raises superior questions astir the project's compliance with the National Capital Planning Act, which requires that projects similar the Fed office renovation beryllium approved by the National Capital Planning Commission," Vought wrote.

"The plans for this task called for rooftop terrace gardens, VIP backstage eating rooms and elevators, h2o features, premium marble, and overmuch more," helium wrote.

But Powell, successful his testimony, said, "There's nary VIP eating room. There's nary caller marble. There are nary peculiar elevators. There are nary caller h2o features. There's nary beehives and there's nary extortion terrace gardens," Vought wrote.

"Although insignificant deviations from approved plans whitethorn beryllium inevitable, your grounds appears to uncover that the task is retired of compliance with the approved program with respect to large plan elements," Vought wrote.

"This would bring the task extracurricular of the NCPC's support and frankincense successful usurpation of the NCPA, and necessitate the Fed to instantly halt operation and get a caller support from the NCPC earlier proceeding immoderate further."

The missive asked Powell to respond to 11 questions astir the renovation task wrong 7 concern days.

The Federal Reserve declined to remark connected Vought's letter.

— Additional reporting by CNBC's Jeff Cox