Federal Reserve Chair Jerome Powell has responded to sharp criticism from the White House regarding the renovation of the Fed's Washington headquarters.
Powell's Response to Criticism
On Thursday, Powell formally replied to a letter from Russell Vought, Director of the Office of Management and Budget, who accused Powell of wasteful spending and mismanagement of the renovation project. In his response, Powell directed Vought to a section of the Fed’s website that provides details of the project, including budgets and schedules. "The Board believes it is of the utmost importance to provide transparency for our decisions and to be accountable to the public," Powell wrote.
Clarifications on Spending
Among more sensational claims in Vought’s complaint was the assertion that the renovation included luxury amenities such as private elevators and exclusive dining rooms. Powell strongly denied these claims, stating that such features are not part of the renovation plans. He noted that the renovations address aging infrastructure and essential safety issues. Powell also mentioned that the project complies with federal environmental standards.
Political Consequences and Next Steps
Despite Powell's measured response, the backlash from Trump allies is expected to escalate. Vought stated plans to visit the Fed's office to review the project. Representative Anna Paulina Luna announced intentions to urge the Department of Justice to investigate whether Powell provided false information about the renovation project's scope. This criticism is part of a broader effort to undermine Powell's leadership as Fed Chair.
Jerome Powell's response to the criticism surrounding the renovation of the Fed's headquarters highlights the need for infrastructure updates, yet the political implications of this controversy may continue.
