ISTANBUL 

A senior Trump administration official on Thursday criticized Federal Reserve Chair Jerome Powell for allegedly overseeing an "ostentatious" office renovation that might violate the law.

This marks the latest confrontation between President Donald Trump and Powell, who are at odds over interest rate policy.

Russell Vought, the head of the Office of Management and Budget, expressed the administration's disapproval in a letter sent Thursday.

"The President is extremely troubled by your management of the Federal Reserve System," he said.

This letter comes amid discontent from Trump over the Fed's refusal to cut interest rates.

While some economists argue that reducing rates could stimulate economic growth, others warn it may trigger higher inflation.

As a result, the Fed’s interest rate-setting committee, chaired by Powell, has chosen to hold rates steady this year after a modest cut last year.

Trump has repeatedly demanded Powell’s resignation and recently criticized him as a "numbskull" for his interest rate policies, adding that "maybe" he would try to remove Powell.

Federal law allows a Fed chair to be dismissed only "for cause," typically implying clear misconduct or significant performance failures. Yet Trump has fired multiple officials in apparent disregard of the applicable rules, signaling that he could try to do the same with Powell.

In his letter, Vought also targeted the Federal Reserve’s extensive renovation plans for its Washington, DC headquarters.

He wrote that the project includes features such as "rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble, and much more."

In addition, he questioned whether the Fed had altered its renovation plans without approval from the commission responsible for overseeing federal projects in the D.C. area.

During a Senate hearing last month, Powell defended the renovation plans, dismissing certain portrayals of the project as "misleading and inaccurate."

He explained to lawmakers that no new marble was being added beyond what is needed to replace damaged sections, adding that there are no "special elevators," rooftop gardens, or new water features.

"All of the sort of inflammatory things that the media carried are either not in the current plan or just inaccurate," Powell said.

Despite this, Vought’s letter contended that Powell’s remarks to the Senate "appear to reveal that the project is out of compliance with the approved plan."

The letter suggested the Federal Reserve might have breached a requirement mandating approval from the National Capital Planning Commission for federal projects in the D.C. area.

The Office of Management and Budget echoed that view in a post on X, claiming Powell "slipped up and revealed he might...be violating the law."

The renovation plans had previously undergone review by the commission several years earlier.

The Federal Reserve traditionally functions with more autonomy than most other branches of government. Under federal law, it holds authority over decisions related to acquiring and renovating its buildings in Washington, D.C., for office use.