Federal Reserve Publicly Counters Trump Administration Over Renovation Costs Amid Escalating Tensions

The U.S. Federal Reserve is directly addressing mounting criticisms from the Trump administration regarding its $2.5 billion headquarters renovation project, launching a new ‘Frequently Asked Questions’ page on its website. This move comes as the administration intensifies its campaign against the central bank and Chairman Jerome Powell.

The newly updated FAQ page, last revised late last week, specifically refutes claims made by Office of Management and Budget Director Russell Vought. Vought, speaking on Thursday, accused Powell of ‘grossly mismanaging the Fed’ and lambasted the renovation as an ‘ostentatious overhaul,’ citing alleged plans for ‘rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble, and much more.’

In response, the Fed’s website clarifies that the project aims for a comprehensive modernization and preservation of historic buildings, some untouched since the 1930s. It explicitly states, ‘No new VIP dining rooms are being constructed as part of the project,’ explaining that existing conference rooms are being renovated for mealtime meetings. The central bank also addresses cost overruns, which have seen the project exceed its initial budget by approximately $700 million, attributing increases to ‘changes to original building designs’ and ‘unforeseen conditions’ like asbestos.

The Fed emphasizes that U.S. taxpayers do not fund the renovation, as the institution is self-funded through interest on securities and bank fees. Vought’s recent criticisms, including a pledge to investigate the renovations, mark a significant escalation in the Trump administration’s ongoing efforts to pressure or potentially remove Chairman Powell, whose term concludes next year. Powell has consistently resisted these pressures, particularly regarding calls to lower interest rates.

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