Russell Russell, Office of Management and Budget, swore on Friday to investigate an investigation of the renovation work in the building of the Federal Reserve, which he called the “palace”, in which the AMOK costs last.
In a potential escalation by President Donald Trump's Fehde with the Fed chairman Jerome Powell, VOUGHT CNBC said that an investigation was justified whether Powell was misleading in the amount of $ 2.5 billion.
“When you go to the nation's shopping center, you will see the construction of this palace … over 2.5 billion US dollars massive cost overruns, and we would like to make sure that we have facts about the size of the size and the extent that is overrun,” said the interview with the “Squawk Box”. “I think it only indicates the basic mismanagement of the Fed under the chairman.”
The Marriner S. Eccles Federal Reserve Building during a renovation in Washington, DC, USA, on Tuesday, October 24, 2023.
Valerie Plesch | Bloomberg | Getty pictures
In a letter issued on Thursday, Vogent accused Powell that “the FED severely abused” and the congress was misleading about the price and scope of the renovation work in the central bank in Washington, DC,
VOUGT said that the FED was about the project and misleaded a congress body in June when he said, some of the more loving aspects of renovation, such as:
The accusations represent another front in Trump's ongoing campaign against Powell. Trump has accused that the central bank guide is playing politics by not lowering interest rates and asked Powell to step down.
“The problem with the chairman Powell is that he came too late at every turn,” said Vought. “It is time to lower the tariffs.
Fed civil servants rejected a comment.
New board members who monitor the Fed project
The renovation project is under the responsibility of the National Capital Planning Commission. In the past few days, Trump has commissioned three new members to the board, all with direct relationships with the White House – Scharf, the new chairman, who is also a secretary of the White House, James Blair, deputy chief of staff of the White House, and Stuart Levenbach, a political analyst of the omb.
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Source: National Capitol Planning Commission
Powell said that politics plays no role in the Fed interest decisions. He and his colleagues have taken over the key overnight since December, although the markets largely assume that a reduction is not at the Fed's July meeting, but in September.
In a recent judgment of the Supreme Court, it was found that the President could not carry out the Fed officials at will. However, the accusations against the renovation work for the building could help create a case that can relieve Powell for reasons.
In any case, Powell's term as chairman expires in May 2026, although he can remain as a governor by 2028. Trump nominated Powell in his first term in November 2017. The Senate confirmed Powell the following February, and former President Joe Biden nominated Powell for a second term that began in 2022.
During the CNBC interview, VOUGHT did not deal directly with a question of whether the fees for the renovation of buildings are connected to Powell's position on the interest rates.
“This certainly has to do with the Fed's tax mismanagement, of which [interest rates] is one aspect of it, “he said. We have new commissioners at the National Capital Planning Commission that ask very difficult questions.”
While the Commission monitors the specifications of the process, there are questions about whether the finances within the omb area of accuracy are located.
The Federal Reserve Act enables the central bank to “maintain, enlarge or rebuild its buildings”, and the Fed alone has the sole control of such buildings or buildings and the space in it. “
The FED is a quasi-government agency and does not receive any direct tax money. While the salaries are determined by the congress, the payment is made by the Fed's self -financing mechanism, mainly from the interest that it receives in their investments.
Under normal circumstances, the Fed refers excess profits to the Ministry of Finance. In recent years, however, the increasing financial return has led the Fed to act with a loss because it pays more interest for its liabilities such as bank reserves than it earns for its long -term bond participations.
Trump has complained that the refusal of the Fed to reduce interest rates costs the government in relation to the interest that it pays for state debt.
Construction of the Marriner S. Eccles Federal Reserve Building in Washington, DC, USA, on Wednesday, June 25, 2025.
Al Drago | Bloomberg | Getty pictures