Overview

• OMB Director Russell Vought sent Jerome Powell a letter accusing him of "grossly mismanaging" the Federal Reserve and demanding answers on potential planning commission breaches.
• The headquarters renovation has ballooned to $2.5 billion—about $700 million over its initial estimate—with disputed features once including premium marble finishes, rooftop gardens and VIP dining rooms.
• In June testimony before the Senate, Powell said ostentatious elements had been dropped and described the project as essential upgrades to the nearly century-old Marriner S. Eccles Building.
• Vought’s formal challenge raises the prospect of seeking Powell’s removal "for cause" under the Federal Reserve Act despite recent Supreme Court guidance limiting policy-based dismissals.
• President Trump has publicly rebuked Powell for keeping interest rates high, called for his resignation and signaled Treasury Secretary Scott Bessent as a potential successor.