The Trump administration has ramped up its criticisms of the Federal Reserve and its Chairman, Jerome Powell, prompting the central bank to issue a new “Frequently Asked Questions” page on its website. This page defends the Fed’s $2.5 billion renovation project, responding directly to criticisms levied by administration officials.
On Thursday, Russell Vought, Director of the Office of Management and Budget, accused Powell of “grossly mismanaging the Fed” and labeled the renovation effort as an “ostentatious overhaul.”
Vought’s comments, shared through a letter posted on X, represent a significant escalation in the administration’s ongoing campaign against Powell. President Trump has consistently accused the Fed Chair of engaging in political maneuvers by refusing to lower interest rates and has repeatedly urged Powell to resign.
Vought’s letter, coupled with his subsequent commitment to investigate the Fed’s renovation activities, indicates that the Trump administration is considering efforts to remove Powell before his term concludes next year.
Despite mounting pressure, Powell has consistently resisted Trump’s criticisms, particularly regarding the insistence on reducing interest rates, a core issue in the ongoing conflict.
The newly published FAQs page, defending the renovation initiative, signifies the Fed’s intent to counter the Trump administration’s recent attacks.
Among the clarifications made, the FAQs state, “No new VIP dining rooms are being constructed as part of the project,” and “Eccles has conference rooms, which are being renovated and preserved. They are also used for mealtime meetings.”
This response appears to challenge Vought’s assertion that the renovation plans included features like “rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble, and much more.”
The FAQ page outlines the key factors contributing to cost overruns in the project, which has been a significant focal point for Trump allies. The construction expenses are projected to exceed the budget by approximately $700 million.
“Various factors have driven cost increases,” the Federal Reserve’s webpage explains, pointing to “changes to original building designs as a result of consultation with review agencies” and “unforeseen conditions,” which include “more asbestos than anticipated.”
Importantly, taxpayers are not responsible for the renovation costs, as the Fed is self-financed through interest earnings on its securities and fees charged to banks.
In his remarks on Friday, Vought reiterated his commitment to investigate the renovation expenditures, stating on Finance Newso, “We want to make sure we have facts as to the largesse and the extent to which it’s overrun.”
These statements build on his earlier post on X, in which he remarked, “While continuing to run a deficit since FY23 (the first time in the Fed’s history), the Fed is way over budget on the renovation of its headquarters.”
The page’s last update was dated July 11, although the specific time of its addition to the site remains unclear.
