Powell requests review of rising costs in Fed's renovation project
- The $2.5 billion renovation of the Federal Reserve's headquarters in Washington D.C. has drawn significant criticism from the Trump administration.
- Jerome Powell's request for a review by the Inspector General follows sharp political scrutiny and accusations of lavish spending.
- The escalating costs and political tensions suggest a challenging environment for Powell amid ongoing pressures regarding monetary policy.
In the United States, Federal Reserve Chair Jerome Powell has come under scrutiny for the ballooning costs associated with the $2.5 billion renovation of the Fed's headquarters in Washington D.C. This project has attracted criticism from the Trump administration, particularly after it was revealed that costs have escalated from an initial estimate of $1.9 billion prior to the pandemic. As a result of the political and public pressure, Powell formally requested an investigation from the Federal Reserve's Inspector General, Michael Horowitz, a few weeks ago. The review will assess not only the updated budget but also any other pertinent issues related to the renovation. The renovation has faced various challenges, including unforeseen issues like lead and asbestos removal, which have contributed to the increased overall expenses. At a recent congressional hearing, Powell defended the project against claims of extravagance and emphasized that certain upgrades, which critics labeled as