White House steps up criticism of Fed chief Jerome Powell as fight over interest rates spills into building upgrades….reports Asian Lite News
In a striking escalation of his campaign to influence the Federal Reserve, US President Donald Trump has launched a full-throated assault on the central bank’s planned renovation of its historic headquarters, turning it into a political flashpoint in his ongoing push for lower interest rates.
The White House’s latest move came on Thursday when Russ Vought, Director of the Office of Management and Budget, sent a strongly worded letter to Federal Reserve Chairman Jerome Powell, accusing the central bank of undertaking an “ostentatious overhaul” of the Marriner S. Eccles Building in Washington, D.C. Trump, Vought wrote, was “extremely troubled” that the renovation may have breached government building guidelines and demonstrated poor stewardship of public trust.
The criticism is part of what many observers see as an unprecedented effort by Trump to discredit and unseat Powell before his term as Fed chair ends in May 2026. Although Powell cannot be dismissed without cause, Trump and his allies are leveraging other avenues to tighten political pressure, including probing the Fed’s $500 million renovation project.
In a social media post this week, James Blair, a senior White House official recently appointed to the National Capital Planning Commission, hinted that Powell may have misled lawmakers during recent testimony about the scope and nature of the renovation. Blair announced he would call for a full review of the building plans, questioning whether Americans could trust a central banker “who may not be telling the truth under oath.”
Trump has gone even further, calling publicly for Powell’s resignation. “He should resign immediately,” the president said Wednesday, adding that he’d prefer someone like Treasury Secretary Scott Bessent to take over. “We need someone who will lower interest rates — now.”
The central bank’s independence has long been considered a cornerstone of US economic stability, but Trump’s rhetoric and actions are increasingly testing those boundaries. In recent months, the president has ramped up his attacks on Powell, accusing the Fed of holding back growth by keeping rates elevated. “LOWER THE RATE!!!” he posted Thursday in another online broadside.
Economists say the Fed has resisted cutting rates primarily out of concern that doing so too quickly could reignite inflation, particularly as the Trump administration’s tariffs and fiscal expansion continue to add pressure on prices. Powell, who was initially appointed to the Fed board by former President Barack Obama and later made chair by Trump in his first term, has so far remained above the political fray, refusing to respond directly to the president’s barbs.
However, Trump’s allies are intensifying their campaign. Bill Pulte, head of the Federal Housing Finance Agency and a Trump appointee, claimed last week that Powell had misled the Senate about the Fed’s renovation plans. “I am asking Congress to investigate Chairman Powell’s political bias and deceptive testimony,” Pulte said, alleging the project “stinks to high heaven.”
Vought echoed these sentiments in his letter, criticising design elements such as rooftop gardens, VIP dining areas, and luxury marble finishes. He also challenged Powell’s statement to Congress that the building had never undergone a major renovation, pointing out that a significant infrastructure update was completed in 2003.
According to the Fed, many of the initially proposed features have since been scrapped. In testimony last month, Powell told lawmakers that the rooftop and dining upgrades were removed from the plan following internal reviews. Still, Fed officials declined to comment further on the letter or ongoing scrutiny.
Legally, the Federal Reserve has autonomy over its physical premises, authorised under law to maintain “suitable and adequate quarters” for its operations. Any White House attempt to interfere with that autonomy could spark a constitutional clash, though Trump’s strategy appears to focus more on public pressure than direct intervention.
Some analysts view the tactic as part of a broader campaign to undermine confidence in the Fed and justify further political involvement in monetary policymaking. “It’s good that central bank budgets are scrutinised,” said Dr. Sung Won Sohn, professor of economics at Loyola Marymount University. “But using it to challenge the Fed’s independence is risky. That’s bad for the economy, bad for inflation expectations, and could ultimately raise long-term inflation.”
For now, Powell remains in his role, steady in the face of growing turbulence. But as the 2026 presidential election cycle gains momentum and economic pressures mount, the political storm engulfing the Federal Reserve shows no signs of dissipating. Whether the central bank can maintain its independence — and how markets respond — may prove critical to the trajectory of both the US economy and Trump’s re-election strategy.
