Trump Attacks Cost of Fed Building. Why That Puts Powell’s Job Under Pressure.

President Donald Trump has repeatedly criticized Powell for not cutting interest rates further. (Getty Images)

President Donald Trump ramped up the pressure on Jerome Powell Sunday evening, attacking the Federal Reserve Chair over the costly renovation of the central bank’s headquarters and again calling for him to step down.

It comes after Russell Vought, the director of the Office of Management and Budget, sent a letter to Powell last week asking for answers about the $2.5 billion renovation of the Washington building. Vought said the Fed may have moved ahead with the project without getting approval from the National Capital Planning (NCPC).

Trump addressed the issue Sunday, speaking to reporters in front of Air Force One. “He’s spending $2.5 billion rebuilding the Federal Reserve building. I don’t know what he knows about building but you talk about costs overrun. He got this approved and started the work during the Biden administration.

“He doesn’t look like the kind of a guy, frankly, who wants to spend $2.5 billion,” he added.

If the Fed is found to have broken planning rules or misled Congress, it could provide a pretext for trying to fire Powell for “cause,” Barron’s reported Thursday.

The Fed appeared to respond Monday, posting a “Frequently Asked Questions” page relating to the Marriner S. Eccles building and its renovation project. “The Federal Reserve takes seriously the responsibility to be a good steward of public resources,” it said. “The project will reduce costs over time by allowing the Board to consolidate most of its operations,” it added.

Trump also reiterated his calls for Powell to resign on Sunday. “If Jerome Powell stepped down it would be a great thing. I don’t know that he’s going to but he should. Jerome Powell has been very bad for our country–we should have the lowest interest rates on earth and we don’t, he just refuses to do it.”

Write to Callum Keown at callum.keown@dowjones.com