On Friday, Jerome Powell, Chair of the Federal Reserve, was invited to defend the ongoing $2.5 billion renovation of the Marriner S. Eccles Building. It was his most comprehensive reply to date regarding the recent shots being fired at him from the Trump administration. In response to a question from Russell Vought, the director of the Office of Management and Budget, Powell made an important point clear. He claimed that certain planned upgrades were deleted from the formal records filed with the National Capital Planning Commission (NCPC) in 2021, but he insisted that this didn’t need the submission of any new paperwork.
The changes were meant to make it easier to build things and avoid time and cost overruns, Powell said. He particularized that the Federal Reserve has been keeping a watchful eye on the deep renovation project. This lack of oversight started immediately after the Board’s 2017 approval.
“We have taken great care to ensure the project is carefully overseen since it was first approved by the Board in 2017,” – Jerome Powell
In his recent correspondence, Powell observed that both buildings in the complex renovation faced serious structural and accessibility challenges. We will clean asbestos and lead contamination. Lastly, we’ll be modernizing and completely replacing all antiquated systems — electrical, plumbing, H.V.A.C.
Additionally, Vought had alleged that Powell had violated government oversight rules related to the way the renovation’s funds had been managed. Powell affirmed that denial, strongly. He said that the Board feels these changes don’t warrant additional public review.
“The Board does not regard any of these changes as warranting further review,” – Jerome Powell
Soon, tensions boiled over between Powell and the Trump administration. President Trump berated the substantial renovation expenditures as a “disgraceful” waste of money. Trump remarked, “When you spend $2.5 billion on, really, a renovation, I think it’s really disgraceful.” This criticism comes amid Trump’s calls for lower borrowing costs, which stand in contrast to Powell’s monetary policy decisions.
In his letter, Vought provided Powell just seven business days to allay his concerns. He explicitly stated that it was “highly unlikely” he’d seek to dismiss Powell without fraud being alleged.
The renovation project at the Fed is well underway and widely covered, attracting attention and scrutiny. At the same time, Powell chairs the Fed’s monetary policy arm, which has raised rates multiple times this year, totaling 4 increases already. As it stands now, Powell can only be removed from his position for cause.