Trump budget chief criticizes Fed Chair Powell for mismanaging central bank

President Donald Trump's budget chief criticized Federal Reserve Chairman Jerome Powell for mismanaging the Fed and overspending on the renovation of the central bank's headquarters. Trump has been urging Powell to cut interest rates but without success. There have been speculations about Trump considering firing Powell and naming a replacement earlier than scheduled.

The budget chief's letter questions whether Trump will try to remove Powell for cause. However, recent Supreme Court rulings suggest that Fed board members have protection from presidential firings.

The renovation of the Marriner S. Eccles Federal Reserve building in Washington, DC, has exceeded its budget by $700 million, totaling $2.5 billion. The cost per square foot is double that of renovating a typical historic federal building. The budget chief's letter referenced Powell's testimony before the Senate Banking Committee, raising concerns about compliance with the National Capital Planning Act.

The renovation plans included extravagant features like rooftop gardens, private dining rooms, and premium marble. Powell denied these claims in his testimony, stating that the project did not include such elements. The budget chief's letter highlighted discrepancies between the approved plan and the actual project.