Just two weeks after President Donald Trump sent a handwritten letter to Powell demanding lower interest rates, Russell Vought, Trump’s director of the Office of Management and Budget (OMB), accused Powell of breaking the law by failing to comply with government oversight regulations and lying to Congress about details of an approximately $2.5 billion planned renovation of the Fed’s headquarters.

While some central banks, such as the European Central Bank and the Bank of Mexico, have lowered their benchmark lending rate a few times this year, the Fed has not. One big reason for that is the major policy shifts since Trump took office. Officials have said they want to see how those changes affect the economy first before considering further rate cuts.

Powell for his part has avoided responding to Trump’s harsh criticism, noting that the Fed is only focused on successfully taming inflation and preserving the labor market’s health.

The latest criticism about the rising costs of the Fed’s headquarters may signal the administration is laying the groundwork to justify firing Powell, said Ed Mills, a policy analyst at Raymond James.

Trump and his allies have said the Fed’s decision to keep rates steady is politically motivated, but Powell has signaled Trump’s tariff policy – and its potential to stoke inflation – have played a role.