Fed Chair Powell Defends $2.5 Billion Washington HQ Renovation Amid White House Scrutiny

Federal Reserve Chair Jerome Powell has robustly defended the $2.5 billion renovation of the Federal Reserve's Washington headquarters amid mounting criticism from the Trump administration and Office of Management and Budget Director Russell Vought. Powell emphasized that the project, approved by the Fed Board and overseen since 2017, addresses essential safety upgrades, including asbestos removal and structural repairs, with no extravagant additions like private elevators or rooftop gardens. He highlighted transparency and accountability, directing inquiries to a dedicated public webpage and underscoring adherence to all oversight and historical preservation guidelines. The Trump administration, frustrated with the Fed's interest rate policies, has used the renovation as a focal point for allegations of fiscal mismanagement, with President Trump suggesting the issue could be cause for Powell's dismissal, though he currently does not plan to fire him. Powell has received support from Senate Banking Committee members who stress the Federal Reserve's independence from political pressure. Despite the White House's investigations and demands, Powell continues to assert the project's necessity and integrity.