The Scoop
White House deputy chief of staff James Blair, budget director Russell Vought, and Federal Housing Finance Agency Director Bill Pulte will be among those visiting the Federal Reserve on Thursday, Blair told Semafor.
The visit, scheduled for 4pm, is part of the White House’s effort to ramp up scrutiny of the Fed’s $2.5 billion renovation, which President Donald Trump has zeroed in on as a possible pretext for ousting Chair Jerome Powell.
“I just want to get eyes on sort of the whole project itself,” Blair told Semafor after finalizing the upcoming visit. The administration is looking to analyze the project plans and get a better sense of what the renovations look like by cross-checking them with details sent in letters and comments made by Powell.
National Capitol Planning Commission chairman Will Scharf and commissioner Stuart Levenbach may also attend the walk-through, Blair said.
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Thursday’s walk-through comes shortly after Vought sent a letter last week suggesting Powell “has grossly mismanaged the Fed.” Vought noted in the letter that Trump “is extremely troubled” by Powell’s management and cited what he described as “an ostentatious overhaul” of the central banking system’s headquarters.
Powell defended the project in response and has also asked the Fed’s inspector general to review the renovations.
Blair told reporters last week that others had expressed interest in the Federal Reserve’s renovation plans as well, including “a number of US senators.” Senate Banking Chair Tim Scott, R-S.C., is expected to attend, according to a person familiar with the planning, but it’s unclear which other senators may be there.
The Fed project has divided Republicans, some of whom argue that the renovations would not be a valid reason to oust Powell, Semafor previously reported. There are also bipartisan fears about the impact removing Powell would have on the markets.
Trump appears to be leaning away from the idea of firing Powell for now, despite the growing criticism from his administration and scrutiny of the headquarter renovations.
“I think he’s done a bad job, but he’s going to be out pretty soon anyway,” Trump told reporters Tuesday, referring to the expiration of Powell’s term next year. “Eight months, he’ll be out.”
Notable
- Senate Majority Leader John Thune is calling for “some amount of oversight” on the renovations.
Eleanor Mueller contributed.