White House Budget Director Claims Fed Chair Broke Renovation Rules

Published: Thursday, July 10, 2025 at 7:47 pm

White House Accuses Fed Chair of Renovation Rule Breaches

Washington – The White House is escalating its pressure on Federal Reserve Chair Jerome Powell, with Budget Director Russell Vought accusing him of violating government building regulations during the renovation of the Federal Reserve headquarters. In a letter made public on Thursday, Vought criticized the renovation plans, which include features like rooftop gardens and VIP dining areas, as extravagant. He also alleged that Powell provided misleading information to Congress by claiming the headquarters had not undergone major renovations, citing past updates to the roof and building systems.

This move appears to be part of a larger effort by the Trump administration to push for Powell's resignation before his term ends in May 2026. Powell has resisted calls to lower interest rates, citing the need to fully assess the potential inflationary effects of President Trump's tariff increases.

The Supreme Court has indicated it could block any attempts by the White House to remove Powell, recognizing the Fed's unique, quasi-private structure. Trump has publicly called for Powell's immediate resignation, advocating for a replacement who would lower interest rates. He believes rate cuts would reduce government borrowing costs and make consumer debt cheaper. However, the Fed is concerned that lowering rates prematurely could reignite inflation. The Fed's preferred inflation measure is currently at 2.3%, slightly above its 2% target.

The White House letter included questions about the renovation project's compliance with federal standards, with Vought suggesting that Powell's testimony indicates non-compliance with the National Planning Capital Act. The Fed values its political independence to set monetary policy without political interference, focusing on stabilizing prices and maximizing employment.

Trump has repeatedly criticized Powell, arguing that his decisions have cost the U.S. through higher debt servicing costs. The Fed's caution stems from the uncertainty surrounding the impact of Trump's tariffs on the economy and the risk of triggering higher inflation.

BNN's Perspective: The situation highlights the ongoing tension between the White House and the Federal Reserve. While the White House is focused on immediate economic benefits through lower interest rates, the Fed is prioritizing long-term price stability. This conflict underscores the importance of the Fed's independence in making monetary policy decisions, even when those decisions are unpopular with the administration.

Keywords: Federal Reserve, Jerome Powell, White House, Russell Vought, Renovation, Interest Rates, Inflation, Donald Trump, Monetary Policy, Economy, Tariffs, Government Debt

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