Powell Defends Fed Renovation Amid Trump Administration Criticism

Washington, D.C. — Federal Reserve Chair Jerome Powell is under increasing scrutiny from the Trump administration regarding a $2.5 billion renovation project at the Fed’s headquarters. As tensions rise, the central bank updated its website on Friday to address various critiques surrounding the project.

Powell’s response came following sharp criticisms from Russell Vought, Director of the Office of Management and Budget, who claimed Powell has ‘grossly mismanaged’ the Fed. Vought described the renovation as extravagant, asserting it includes features like rooftop gardens and VIP dining rooms.

In defense, the Federal Reserve clarified on its website that the upgrades focus on modernizing three historic buildings, which have not been extensively renovated since the 1930s. The plan aims to improve safety and accessibility, rather than luxury enhancements. The Fed distinctly stated that no private VIP dining rooms are being constructed, countering Vought’s assertions.

Powell has faced ongoing pressure from President Trump, who has claimed the Fed’s refusal to lower interest rates is politically motivated. Trump has expressed dissatisfaction with Powell’s leadership, even suggesting that he might consider removing him before his term ends next year.

Vought’s allegations coincide with a broader strategy by the Trump administration to create leverage over the Fed. The administration’s call for an investigation into the renovation may set the stage for potential action against Powell. However, White House officials assert there is no current plan to dismiss him.

The updated FAQ on the Fed’s website highlighted that taxpayer funds are not being utilized for the renovation, with costs covered through the institution’s own revenues, including fees charged to banks and interest earned on securities. The FAQ also outlines that construction costs have increased due to necessary changes from historical preservation requirements and unforeseen structural issues.

As the political standoff continues, the Fed maintains its commitment to independence in monetary policy while addressing concerns raised by the administration about the renovation’s budget.