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Trump budget chief says Fed Chair Powell mismanaged central bank

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

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.”
Key events
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.
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.”
Trump plans to move Space Command headquarters to Alabama from Colorado, sources tell Reuters
According to Reuters, the Trump administration is planning to announce that it will relocate the headquarters of US Space Command from Colorado Springs, Colorado, to Huntsville, Alabama, sources familiar with the deliberations told the outlet.
The decision is a reversal of the Biden administration’s choice in 2023, when Colorado Springs was selected as the permanent home for the military’s newest combatant command after an extensive review process.
Space Command currently operates from Peterson Space Force Base in Colorado Springs on an interim basis, where it has been headquartered since its reestablishment under Trump in 2019.
A live streaming link ahead of the 2pm ET Trump announcement posted by the Defense Visual Information Distribution Service (DVIDS), the US military’s official media distribution arm, describes the event as a “US Space Command HQ Announcement”.
Trump illegally deployed national guard during LA immigration protests, judge rules
A Washington judge has found that Trump illegally deployed National Guard troops during immigration enforcement operations in Los Angeles this summer.
Judge Charles Breyer ruled that sending military personnel alongside immigration agents violated the Posse Comitatus Act, which bars the armed forces from domestic law enforcement. California brought the legal challenge against the federal government.
The Trump administration argued the troops were only protecting federal officers, not conducting arrests themselves. The judge did not order the remaining military personnel to be withdrawn.
Nadler is one of the most influential House Democrats in office, and represents a high-profile Manhattan district steeped in prominent fundraising and media attention.
A member of the progressive caucus, the 78-year-old built a reputation as a reliable voice on issues like abortion rights, LGBTQ rights, and government accountability.
Unlike Democratic party leaders and New Yorkers Hakeem Jeffries and senator Chuck Schumer, Nadler endorsed Democratic mayoral nominee Zohran Mamdani ahead of the general election.
Democratic representative Jerry Nadler won’t seek re-election
New York representative Jerry Nadler officially announced that he will relinquish his seat next election after serving over three decades in Congress.
“This decision has not been easy” he wrote in the statement. “But I know in my heart it is the right one and that it is the right time to pass the torch to a new generation”.
There are murmurs that instead the “exciting announcement” will be about renaming the Department of Defense to the “Department of War” – it’s former name previously discontinued in 1947.
A number of news outlets reported ahead of Labor Day that the White House had been working up plans for the reverted name, citing a White House official.
In his latest posting on Truth Social, Trump wrote: “CHICAGO IS THE MURDER CAPITAL OF THE WORLD!”
In late August, Pentagon sources told the Washington Post and Rolling Stone that planning was actively underway for a national guard operation in Chicago, though no final decision had been announced.
When asked at the time, a Pentagon official told the Guardian “we won’t speculate on further operations” and that the department is “continuously working” with other agencies on “plans to protect federal assets and personnel”.
It’s still unclear what the announcement will touch on, but the White House rapid response team shared a Trump post from Truth Social this morning saying that “Chicago is the worst and most dangerous city in the World, by far’” and added “[governor JB] Pritzker needs help badly, he just doesn’t know it yet”.
“I will solve the crime problem fast, just like I did in DC”, he wrote.
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Trump National Guard California Newsom

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.
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