Office of Management and Budget Director Russell Vought alleged that Powell may have broken the law by not complying with government oversight regulations.
Federal Reserve Chair Jerome Powell responded in a July 17 letter to a senior Trump administration official who last week accused the leader of the nation’s central bank of mismanaging its $2.5 billion Washington headquarters renovation project.
On July 10, Office of Management and Budget (OMB) Director Russell Vought penned a letter to Powell and posted it to X, criticizing the Fed chair for overseeing what he called an “ostentatious overhaul” of the Federal Reserve’s Washington headquarters, which includes the historic marble Marriner S. Eccles Building on the National Mall.
He suggested that Powell may have broken the law by not complying with government oversight regulations related to the facility’s ongoing $2.5 billion renovation.
“The President is extremely troubled by your management of the Federal Reserve System,” Vought wrote. “Instead of attempting to right the Fed’s fiscal ship, you have plowed ahead with an ostentatious overhaul of your Washington D.C. headquarters.”
The OMB director gave Powell seven business days to respond to the letter and said construction could be halted immediately.
Vought alleged that the renovation plans for the 90-year-old Marriner S. Eccles Building include terrace rooftop gardens, water features, VIP elevators, and premium marble. He also suggested that Powell’s June 25 testimony raises “serious questions” about the project’s compliance with the National Capital Planning Act, if the current renovation plans include elements not approved by the National Capital Planning Commission.
The National Capital Planning Act requires construction projects for the federal government to be approved by the National Capital Planning Commission.
This week, the Federal Reserve updated its frequently asked questions page to respond to Vought’s allegations.
“Major systems in both buildings were obsolete and in need of replacement for health and safety reasons,” the website states. “They included plumbing, electrical, fire suppression, water connections, and HVAC. Some systems dated to the construction of the buildings in the 1930s.”
The central bank also denied that the plans include new water features, VIP elevators, and terrace rooftop gardens.
By Jacob Burg
