The Federal Reserve’s $2.5 billion renovation plan for its Washington headquarters has escalated tensions between President Trump and Fed Chair Jerome Powell, according to Axios. Trump has long been critical of Powell’s stance on interest rates and is using the renovation as an opportunity to push Powell out before his term ends next year. Office of Management and Budget Director Russell Vought accused Powell of misleading Congress about project costs in a letter posted Thursday on X and called for an investigation. The Fed responded with an FAQ page addressing the criticism. Axios reported Monday that Powell has asked the bank’s inspector general to review the redesign. The Fed is protected from political interference by law, and a recent Supreme Court order includes a carveout that temporarily shields it from firings. Removing Powell would not ensure that the Fed board votes to lower interest rates.
