Fed Shows $2.5B HQ Renovation Amid Trump Criticism

President Donald Trump is using the $2.5 billion renovation of the Federal Reserve headquarters as a platform to intensify his pressure on Fed Chair Jerome Powell to lower interest rates, criticizing Powell for not acting swiftly amid high borrowing costs. The renovation project, which includes security upgrades such as blast-resistant windows and measures to address asbestos and lead contamination, has drawn sharp scrutiny from Trump and other Republicans who label it wasteful and extravagant. The Fed staff provided reporters a detailed tour of the construction site ahead of Trump's visit, highlighting changes made due to security and regulatory requirements, including the removal of rooftop seating and water fountains to avoid perceptions of luxury. The White House has even considered leveraging the renovation to challenge Powell’s leadership, though legal advisers doubt such a move would succeed in court. Despite Trump's demands, Powell has maintained a cautious stance on rate cuts, awaiting clearer inflation impacts from tariffs and other economic factors. The renovation, expected to conclude by 2027, underscores the tension between the Fed’s operational independence and political pressures from the current administration.