Fed Chair Powell Seeks Watchdog Review of $2.5B HQ Renovations Amid Trump Criticism

Federal Reserve Chair Jerome Powell has requested an independent inspector general review of the Federal Reserve's $2.5 billion renovation project for its Washington, D.C. buildings amid intense criticism from President Donald Trump and his administration. The renovation costs have ballooned by $700 million over initial estimates, leading White House officials to label the project as "ostentatious" and question its necessity. Trump has repeatedly attacked Powell for not lowering short-term interest rates, claiming that higher rates are costing the U.S. trillions, and has demanded Powell's resignation, despite no indication Powell will step down before his term ends in May 2026. Powell has denied reports of lavish spending on the renovations, stating there are no extravagant features like VIP dining rooms or marble finishes. The controversy underscores heightened tensions between the Trump administration and the Federal Reserve over monetary policy and the Fed's independence, with Trump administration officials also raising concerns about possible violations of local building rules. Powell's call for the watchdog review aims to address these concerns while reinforcing the Fed's autonomy in pursuing its mission of stable prices and maximum employment.