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Trump budget chief says Fed Chair Powell mismanaged central bank

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President Donald Trump‘s budget chief on Thursday said that Federal Reserve Chairman Jerome Powell “has grossly mismanaged the Fed” and suggested he had misled Congress about a pricey and “ostentatious” renovation of the central bank’s headquarters.

The broadside by Office of Management and Budget Director Russell Vought opened up a new front in Trump’s war of words against Powell.

Trump has repeatedly called on the Fed chairman to cut interest rates, without success. He reportedly has considered firing Powell and, more recently, publicly naming the chairman’s replacement months earlier than the end of Powell’s term next spring.

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Vought’s letter raises the question of whether Trump will seek to remove Powell for cause, at least ostensibly.

But the Supreme Court in a recent decision strongly suggested that Federal Reserve board members have special protection from being fired by a president.

Construction on the Marriner S. Eccles Federal Reserve building in Washington, DC, US, on Wednesday, June 25, 2025.

Al Drago | Bloomberg | Getty Images

“While continuing to run a deficit since FY23 (the first time in the Fed’s history), the Fed is way over budget on the renovation of its headquarters,” Vought wrote in a post on the social media site X.

“Now up to $2.5 billion, roughly $700 million over its initial cost,” Vought wrote. “The cost per square foot is $1,923–double the cost for renovating an ordinary historic federal building. The Palace of Versailles would have cost $3 billion in today’s dollars!”

Vought’s tweet linked to a letter he sent Powell that referenced the Fed boss’s June 25 testimony before the Senate Banking Committee.

“Your testimony raises serious questions about the project’s compliance with the National Capital Planning Act, which requires that projects like the Fed headquarters renovation be approved by the National Capital Planning Commission,” Vought wrote.

Construction on the Marriner S. Eccles Federal Reserve building in Washington, DC, US, on Wednesday, June 25, 2025.

Al Drago | Bloomberg | Getty Images

“The plans for this project called for rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble, and much more,” he wrote.

But Powell, in his testimony, said, “There’s no VIP dining room. There’s no new marble. There are no special elevators. There are no new water features. There’s no beehives and there’s no roof terrace gardens,” Vought wrote.

“Although minor deviations from approved plans may be inevitable, your testimony appears to reveal that the project is out of compliance with the approved plan with regard to major design elements,” Vought wrote.

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“This would bring the project outside of the NCPC’s approval and thus in violation of the NCPA, and require the Fed to immediately halt construction and obtain a new approval from the NCPC before proceeding any further.”

The letter asked Powell to respond to 11 questions about the renovation project within seven business days.

The Federal Reserve declined to comment on Vought’s letter.

— Additional reporting by CNBC’s Jeff Cox



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Stock market today: Dow, S&P 500, Nasdaq sink as Treasury yields jump amid tariff, Fed uncertainty – Yahoo Finance

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  1. Stock market today: Dow, S&P 500, Nasdaq sink as Treasury yields jump amid tariff, Fed uncertainty  Yahoo Finance
  2. Wall St hits over one-week low on tariff uncertainty, data in focus  Reuters
  3. US stocks fall as bond sell-off spills into equities  Financial Times
  4. Stock Market Today: Dow Futures Fall; Treasury Yields Rise — Live Updates  The Wall Street Journal
  5. Dow falls 250 points to kick off September on tariff worries, rising bond yields: Live updates  CNBC



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‘Trump loses again’: California governor reacts to judge ruling that national guard in LA violated federal law – live | Trump administration

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Newsom after judge ruling on national guard in LA: ‘Trump loses again’

California governor Gavin Newsom responded to his state’s federal court win that Trump’s deployment of national guard troops in Los Angeles this summer was illegal.

“DONALD TRUMP LOSES AGAIN” Newsom posted on X. “The courts agree — his militarization of our streets and use of the military against US citizens is ILLEGAL.”

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Rudy Giuliani has been discharged from the hospital and is “progressing well” following a car collision in New Hampshire on Saturday, his spokesperson Ted Goodman said.

“The mayor would like to thank the New Hampshire State Police, paramedics, Elliot Hospital, and all the physicians and nurses who provided incredible care” Goodman added.

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Trump National Guard California Newsom

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The National Guard, police and protesters stand off outside of a downtown jail in Los Angeles following two days of clashes with police during a series of immigration raids on June 08, 2025 in Los Angeles, California.

Spencer Platt | Getty Images

A federal judge on Tuesday barred President Donald Trump from deploying National Guard and other military troops in California to execute law-enforcement actions there, including making arrests, searching locations, and crowd control.

The ruling came in connection with a lawsuit filed in early June by the state of California challenging Trump’s and Defense Secretary Pete Hegseth’s deployment of the Guard to deal with protests in Los Angeles over the Trump administration’s immigration enforcement policies.

Judge Charles Breyer said that Trump’s deployment of thousands of National Guard troops and 700 Marines to L.A. violated the federal Posse Comitatus Act, which bars U.S. Military forces from enforcing the law domestically.

Breyer’s ruling in U.S. District Court in San Francisco is limited to California, and the judge stayed the decision until Sept. 12 to give the Trump administration time to appeal it.

But it comes as Trump has considered deploying National Guard troops to other U.S. cities to deal with crime, including Oakland and San Francisco.

Breyer warned that it would create “a national police force with the President as its chief.”

Gov. Gavin Newsom gloated about the ruling in a social media post.

“DONALD TRUMP LOSES AGAIN,” Newsom wrote on X.

“The courts agree — his militarization of our streets and use of the military against US citizens is ILLEGAL.”

Breyer, in his ruling,g wrote, “Congress spoke clearly in 1878 when it passed the Posse Comitatus Act, prohibiting the use of the U.S. military to execute domestic law.”

“Nearly 140 years later, Defendants — President Trump, Secretary of Defense Hegseth, and the Department of Defense — deployed the National Guard and Marines to Los Angeles, ostensibly to quell a rebellion and ensure that federal immigration law was enforced,” the judge wrote.

“There were indeed protests in Los Angeles, and some individuals engaged in violence,” Breyer wrote.

“Yet there was no rebellion, nor was civilian law enforcement unable to respond to the protests and enforce the law.”

Breyer said that evidence introduced during a trial for the lawsuit shows that the defendants had “systematically used armed soldiers (whose identity was often obscured by protective armor) and military vehicles to set up protective perimeters and traffic blockades, engage in crowd control, and otherwise demonstrate a military presence in and around Los Angeles.”

CNBC has requested comment on the ruling from the Justice Department, which represented the Trump administration in the lawsuit.

This is breaking news. Please refresh for updates.



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