JD Vance Slams Powell Over ‘Monetary Malpractice’ as Fed Faces $700 million Controversy

- Vance criticizes Federal Reserve Chair Jerome Powell for delaying rate cuts despite slowing inflation. - White House considers replacing Powell amid a $2.5 billion renovation controversy. Vice President JD Vance and President Trump have escalated their criticism of Federal Reserve Chair Jerome Powell, accusing him of being too slow to reduce interest rates as inflation shows signs of easing. On July 13, 2025, Vice President JD Vance labeled Powell’s hesitancy “monetary malpractice,” reflecting the Trump administration's growing frustration with Federal Reserve policies. A recent inflation report revealed a sharp cooldown with price increases near target levels, which has amplified calls for immediate monetary adjustments. The White House is now exploring its legal authority to remove Powell before his term expires in May 2026. Although President Trump has publicly stated he does not want to fire Powell, he is reportedly considering alternative candidates, including National Economic Council Director Kevin Hassett, former Federal Reserve Governor Kevin Warsh, and Treasury Secretary Scott Bessent. Meanwhile, a $2.5 billion Federal Reserve building renovation is further fueling tensions. The project has come under scrutiny for exceeding its budget by $700 million. Consequently, Director of the Office of Management and Budget Russell Vought accused Powell of “grossly mismanaging the Fed” and launched an investigation into the overspending. The administration has criticized elements of the project, alleging unnecessary extravagance. In response, the Federal Reserve clarified on its website that “No new VIP dining rooms are being constructed as part of the project.” Vought’s inquiry remains ongoing and could influence further actions by the Trump administration. Although Powell continues to hold his position, his leadership faces intense public and administrative scrutiny over these controversies. As a result, the outcome of these disputes over monetary policy and fiscal oversight could significantly impact the Federal Reserve’s direction in the coming months.