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2w ago

White House Probes Powell Over $2.5 Billion Fed HQ Renovation

OMB Director Russell Vought alleges that the Fed chair misled Congress over exorbitant renovation costs alongside a revealed list of contenders to succeed Jerome Powell.

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U.S. President Donald Trump looks on as Jerome Powell, his nominee at the time to lead the U.S. Federal Reserve, moves to the podium at the White House in Washington, U.S., November 2, 2017. REUTERS/Carlos Barria/File Photo
Federal Reserve Chairman Jerome Powell listens during an open meeting of the Board of Governors at the Federal Reserve on Wednesday, June 25, 2025, in Washington. (AP Photo/Mark Schiefelbein)
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Overview

  • Russell Vought’s July 10 letter charges Chairman Jerome Powell with gross mismanagement of a $2.5 billion headquarters overhaul, citing $700 million in overruns and potential National Capital Planning Act violations.
  • Powell’s June 25 testimony denying luxury features such as VIP dining rooms and rooftop gardens has prompted the Office of Management and Budget to question compliance with the NCPC-approved plans.
  • White House sources have disclosed a short list of potential successors—including Scott Bessent, Kevin Hassett, Kevin Warsh, Christopher Waller and Michelle Bowman—fueling leadership speculation.
  • President Trump has escalated public pressure on the Fed to cut interest rates, labeling Powell “Too Late” even as the Federal Open Market Committee maintains its data-driven hold on rates.
  • A May Supreme Court ruling reinforced that the Fed chair can only be removed for cause, underscoring the legal shield protecting the central bank’s policy independence.