Trump Gets FAQ'd By Powell—No Champagne Rooms, Just Clearing Cancer Dust

The Federal Reserve is under fire from the Trump administration over a controversial renovation project at its Washington headquarters, which has soared past its original $2.5 billion estimate.

In response, Fed Chair Jerome Powell ordered a review of the project amid growing political backlash and accusations of mismanagement, secrecy, and lack of oversight, according to Axios.

What Happened: As criticism mounts, the central bank published a detailed FAQ on Sunday that explained changes made to the original renovation plans and the reasons behind the project's cost increases—emphasizing the need for safety upgrades—while asserting its financial independence from taxpayer funds.

Some of the questions on the FAQ page include, "Do you have new water features?" and "Is there a new VIP dining room?". The Fed responded "No" to both questions. 

The Fed explained in the FAQ that the renovation is necessary to address safety hazards and to bring the buildings up to modern standards. The document also states that construction had revealed more asbestos than anticipated, toxic contamination in soil, and a higher-than-expected water table, which upped the costs. 

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Why It Matters: The review was initiated at the request of Fed Chair Jerome Powell following public backlash over the ballooning costs of the renovation project.

Federal Housing Finance Agency Director Bill Pulte alleges that Powell lied about the specifics of the renovations during his Senate Banking Committee testimony.

Kevin Hassett, director of the National Economic Council, questioned how the Fed could spend such a large sum on a building without proper congressional oversight. 

"The idea that the Fed could print money and then spend $2.5 billion on a building without real congressional oversight, it didn't occur to the people that framed the Federal Reserve Act," Hassett said Monday on CNBC's "Squawk Box.

"We've got a real problem of oversight and excess spending," he added. 

Additionally, former Fed Governor Kevin Warsh told Fox News on Sunday that the renovation costs are "outrageous" and said the central bank "has lost its way."

The Federal Reserve clarified that taxpayers do not fund the central bank, and it is not subject to the supervision of the Office of Management and Budget. 

The central bank also stated that it has coordinated with the National Capital Planning Commission on the project and that it does not believe any of the changes require further review.

It’s worth noting that President Trump has consistently scrutinized Powell over interest rates and has called for his resignation on social media.

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