Fed Chair Powell Responds to White House Over Renovation Costs, Amid Trump’s Criticism

Kokcha News Agency: U.S. Federal Reserve Chair Jerome Powell has written a letter to the White House Office of Management and Budget (OMB) Director Russell Vought, addressing concerns over the renovation costs of the Fed’s headquarters in Washington, D.C. The project, which began during Trump’s first term, has seen its budget balloon from an initial estimate of $1.9 billion to $2.5 billion, drawing sharp criticism from President Trump and his administration.

The renovation of the Fed’s headquarters, a complex built in the 1930s, is the first major overhaul in nearly 90 years. Powell and other Fed officials initiated a “multi-phase, multi-building process” to modernize the aging infrastructure. However, like many government construction projects, the costs have exceeded the original budget.

In his letter, Powell emphasized that the renovation was necessary, legally approved, and conducted transparently. He stated, “We have taken great care to ensure the project is carefully monitored since it was first approved by the Board of Governors in 2017.” Powell also noted that the project’s details have been publicly disclosed on the Fed’s website to ensure transparency and that the information aligns with what he presented to a Senate committee on June 25.

Powell defended the project’s scale, explaining that it involves the renovation of two historic buildings that have not undergone comprehensive updates since their construction in the 1930s. He assured that the project follows a plan approved by the National Capital Planning Commission and that no unnecessary additions, such as “VIP dining rooms” or “VIP elevators,” have been included.

Trump’s Criticism and Political Tensions:
President Trump, who initially nominated Powell as Fed Chair, has recently criticized the renovation project, accusing Powell of misleading Congress about the costs. Trump questioned, “How do you spend $2.5 billion on a renovation? There’s no proper explanation.”

Last week, Vought sent a letter to Powell demanding answers about the project’s costs within seven business days. This move is seen as part of a broader effort by the Trump administration to find grounds to remove Powell from his position, following tensions over the Fed’s refusal to lower interest rates as aggressively as Trump desired.

The Fed’s renovation project has become a focal point in the ongoing political friction between Trump and Powell. While Trump has repeatedly criticized Powell’s monetary policy decisions, the administration is now scrutinizing the Fed’s management of the renovation as a potential justification for his removal.