The White House has opened a new line of criticism against Federal Reserve Chair Jay Powell, accusing him of mismanaging an expensive renovation of the central bank’s headquarters in Washington, D.C., amid rising tensions between the Trump administration and the Federal Reserve.
Powell Under Fire for Fed Building Renovation
Russell Vought, Director of the Office of Management and Budget and a close ally of President Donald Trump, publicly criticized Powell in a post on X (formerly Twitter), alleging that the Fed Chair “grossly mismanaged” the refurbishment of the Marriner S. Eccles Building, the Federal Reserve’s headquarters.
Vought highlighted that the renovation is now more than $700 million over budget, bringing the total cost to approximately $2.5 billion—a figure he compared to the construction costs of the Palace of Versailles in today’s dollars. He called the project “ostentatious” and an example of poor oversight by Powell.
While Powell has previously dismissed reports about overspending as “inaccurate,” this marks the first public attack from a senior Trump administration official regarding the renovation project. President Trump has repeatedly criticized Powell for not cutting interest rates, calling him a “numbskull” and “a stubborn mule,” but Vought’s remarks reflect a broadening of the administration’s pressure campaign.
Broader Questions Over Fed Independence
The renewed tension raises fresh questions about the Federal Reserve’s independence as Trump increases pressure on Powell and other officials at the central bank. A feature analysis from the Financial Times explores whether institutional safeguards can preserve Fed autonomy amid rising political attacks.
Other Top Headlines
1. Trump Promises Major Statement on Russia
President Trump said he would deliver a “major statement” on Russia next week and revealed that the U.S. will send additional military equipment to Ukraine, including Patriot missile systems, funded by NATO allies through new purchasing agreements.
2. Tariff Threat to Canada
Trump also announced that the U.S. will impose a 35% tariff on Canadian imports beginning in August, escalating tensions with one of the country’s closest trading partners. He sent an official letter to Canadian Prime Minister Mark Carney late Thursday.
Deeper analysis available: FT Canada correspondent Ilya Gridneff will respond to reader questions on U.S.-Canada trade relations in a special edition of FirstFT.
3. Google Joins Wave of Tech Discounts for U.S. Government
Google is the latest tech giant to slash prices on cloud computing services for the U.S. government, following similar moves by Oracle, which agreed to a 75% discount on some contracts. The Biden administration continues pressuring firms to reduce costs for federal agencies.
Meanwhile, the State Department notified staff that it plans to lay off hundreds of domestic employees in the coming days as part of wider government cost-cutting efforts.
4. BCG Executives Step Down Over Gaza Work
Two senior executives at Boston Consulting Group (BCG) will leave their leadership positions following revelations about the firm’s expanding work in Gaza. The shakeup comes amid scrutiny over private sector involvement in conflict-related contracts.
5. JPMorgan’s Dimon Warns Europe is Losing Ground
Jamie Dimon, CEO of JPMorgan Chase, issued a stark warning to European leaders, claiming the EU is falling behind the U.S. and China in global economic competitiveness. Dimon’s remarks underline growing concerns about Europe’s stagnating growth and sluggish innovation.
Additional Highlights
- Texas Floods: President Trump and First Lady Melania Trump are expected to visit Kerrville, Texas, to meet with families impacted by the deadly flooding that has killed over 100 people.
- Air India Crash: Authorities are set to release a preliminary report into India’s worst air disaster in decades.
- Wimbledon: The men’s semi-finals are underway, while American star Amanda Anisimova faces Poland’s Iga Świątek in the women’s final tomorrow.
- Ovidio Guzmán Trial: The son of cartel kingpin “El Chapo” is expected to plead guilty in a U.S. federal court in Chicago today.
Business Spotlight: WPP’s ‘Kodak Moment’
Cindy Rose, a senior executive at Microsoft, will take over leadership at global advertising giant WPP, as the company grapples with the growing influence of AI on the creative industry. One analyst likened the moment to a “Kodak moment”—a warning of what happens when a company misses a disruptive technological shift.
Opinion & Culture
- Gillian Tett: Trump’s unpredictable actions are creating confusion in financial markets, with record stock prices contrasting signals from the bond market.
- Richard Waters: Tesla’s stock reflects “founder syndrome” taken to the extreme, powered by belief in Elon Musk’s personal brand.
- Unhedged Podcast: Katie Martin and Robin Wigglesworth dissect the rise of trading firm Jane Street.
- Climate & Comfort: Journalist John Burn-Murdoch explores how air conditioning became essential as indoor temperatures rise and how this 20th-century invention shapes health, equity, and climate resilience.
In Retrospect: Greece’s Financial Recovery
This month marks 10 years since the turning point in the Greek financial crisis. Once a threat to the entire European monetary union, Greece has since rebounded, offering lessons in resilience and reform.
From Music to Resistance: The Odesa Philharmonic Orchestra, which gave its final performance days before Russia’s 2022 invasion, continues to bring music to the war-torn region, defying missiles and chaos. The conductor reflects on using music as a form of national identity and resistance.
