Powell defends billion-dollar Fed building renovation project in letter to White House

Federal Reserve (Fed) Chairman Jerome Powell responded to accusations from the Trump administration, led by Russell Vought, director of the Office of Management and Budget, who singled him out for improper management of the renewal of $2,500 million central bank headquarters in Washington, D.C., which includes the iconic Marriner S. Eccles building on the National Mall.

In a letter sent on Thursday night, Powell defended the project's transparency, stating that it has been rigorously monitored since its approval by the Fed's board in 2017.

“We have taken great care to ensure the project is carefully overseen,” he wrote.

He also clarified that the Fed is not subject to the direction of the National Capital Planning Commission (NCPC), although it has voluntarily collaborated with it.

Powell explained that modifications to the project, included in 2021 documents, were eliminated to simplify construction and avoid further delays or costs, without deeming them substantial enough to require a resubmission to the NCPC. "The Board does not regard any of these changes as warranting further review," he said.

The project, whose cost has increased from $1.9 billion to $2.5 billion, seeks to address "significant structural repairs and other updates," including asbestos and lead abatement, as well as upgrades to electrical, plumbing, heating, ventilation, air conditioning, and fire detection systems.

In response to criticism of alleged luxuries, Powell denied the allegations, “There’s no VPI [sic] dining room. There’s no new marble. We took down the old marble while putting it back up. There are no new water features. There’s no beehives and there’s no roof terrace gardens.”

Trump administration criticizes Powell's high spending

On his X account a few days ago, Vought pointed out the elephantiastic Fed budget destined for renovating its headquarters:

“Chairman Jerome Powell has grossly mismanaged the Fed. While continuing to run a deficit since FY23 (the first time in the Fed's history), the Fed is way over budget on the renovation of its headquarters. Now up to $2.5 billion, roughly $700 million over its initial cost. These renovations include terrace rooftop gardens, water features, VIP elevators, and premium marble. The cost per square foot is $1,923--double the cost for renovating an ordinary historic federal building. The Palace of Versailles would have cost $3 billion in today's dollars! Unfortunately, Powell's recent testimony to Congress has led to serious questions that now require additional oversight from OMB, in conjunction with the National Capital Planning Commission. Today, I sent the letter below to Chairman Powell to get to the bottom of this largesse”.

In that vein, President Donald Trump called the project's cost "really disgraceful" and suggested it might justify dismissing Powell. However, he later qualified that it was "very unlikely" that he would remove him "unless he has to leave for fraud".