Overview

• Office of Management and Budget Director Russell Vought sent a letter to Powell on July 10 alleging gross mismanagement and probing $700 million in cost overruns on the Fed’s $2.5 billion headquarters renovation.
• The letter questions whether design changes such as rooftop gardens, VIP elevators and marble finishes were approved by the National Capital Planning Commission and may violate the National Capital Planning Act.
• President Trump has called for Powell’s resignation, publicly praised Treasury Secretary Scott Bessent as a potential successor and named allies to the planning commission to scrutinize the project.
• Powell, defending the renovation in June Senate testimony, denied the added luxury features and said cost overruns were necessary for essential building upgrades while keeping interest rates steady.
• A May Supreme Court ruling affirmed that Fed board members cannot be removed for policy disagreements, making it unlikely that the administration can oust Powell without legal cause.