Supporters of Donald Trump are calling for a full investigation into the renovation costs of the Federal Reserve headquarters in Washington, claiming that the skyrocketing expenses may be linked to mismanagement or even fraud.
Political Context and Accusations
The political goal is clear: use the controversy surrounding the renovation to remove Jerome Powell from his position at the Fed. Trump has expressed frustration with Powell for his refusal to lower interest rates this year.
Powell's Response to Criticism
Powell responded to the allegations in a letter dated July 17, stating that the renovations were being conducted transparently. He clarified that the gardens are green roofs for environmental compliance and that the elevator extension is necessary for accessibility. He also requested the Fed's Inspector General to review the entire project.
Challenges and Costs of Renovation
Initial estimates for the renovation were around $1.9 billion, but the price increased by more than 30%. Contributing factors include rising steel prices and delays due to design reviews. The renovation involves complex underground construction and adherence to stringent federal security codes.
The challenges surrounding the renovation of the Eccles and East Buildings reflect the need for effective management and oversight of costs.
