Federal Reserve Chair Jerome Powell responded to scrutiny over the central bank's multi-billion-dollar, multi-year renovation of its Washington, D.C. headquarters, emphasizing that the project is being managed responsibly, with no extravagant features or misuse of public funds.
What Happened: In a letter addressed to the Office of Management and Budget Director Russell Vought, Powell said that the renovation of the Marriner S. Eccles Building and the 1951 Constitution Avenue Building was necessary, given their aging infrastructure, with both buildings built in the 1930s.
“Neither building has seen a comprehensive renovation since they were first constructed,” Powell says, noting that the project addresses “significant structural repairs” and updates “to make the buildings safe, healthy, and effective places to work.”
This, he says, includes the removal of asbestos and lead, and full replacement of antiquated electrical, plumbing, and HVAC systems.
Powell pushed back against allegations of excessive spending in his letter, alongside the criticism of its scope and extravagant design features.
“There are no VIP dining rooms being constructed as part of the project,” he said, and “there are no special, private, or VIP elevators being constructed,” but he acknowledges that the initial design included new water features, which “have been eliminated,” he notes.
Why It Matters: Powell also highlighted the fact that the Federal Reserve Board voluntarily submitted its renovation plans to the National Capital Planning Commission, and has since received design approvals in 2020 and 2021. He also notes that the project has been under oversight, including regular audits and reporting to the Fed's independent inspector general.
“We take seriously the responsibility to be good stewards of public resources,” Powell says, adding that the project has been subject to budget approvals each year by board members, and that he’s since asked the Fed’s Inspector General to conduct a fresh review of the project.
This comes amid growing criticism of the Fed’s $2.5 billion headquarters renovation, with Vought himself attacking the central bank this week, saying that “the Palace of Versailles would have cost $3 billion in today's dollars,” to highlight the extravagance of the project.
Speculation continues to mount among allies of President Donald Trump that this controversy could be used as grounds for terminating Powell “for cause,” amid escalating tensions and months of public criticism.
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