Trump vs Fed: Renovation costs spark political storm
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Powell Calls for Inspector General Review
Federal Reserve Chair Jerome Powell has asked the inspector general to review the $2.5 billion renovation of Fed buildings in Washington—a project now $700 million over budget. The move follows accusations from Trump officials, who have labeled the overhaul as “ostentatious.” (Source: AP)
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What Sparked the Criticism
Originally approved in 2017, the renovations have drawn scrutiny from the Trump camp over alleged lavish features, including rooftop terraces and VIP elevators. Powell has publicly denied these claims, calling them misleading and inaccurate.
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Political Pressure Mounts
President Trump and senior adviser Russ Vought have sharply criticized Powell. In a letter, Vought hinted at a possible “violation of local building rules,” intensifying political pressure and raising questions about the Fed’s independence—as well as potential efforts to remove Powell before his term ends in 2026.
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Fed’s Legal and Financial Position
The Fed asserts that its renovation decisions are voluntary and not subject to the authority of the National Capital Planning Commission. It also emphasized that it is not taxpayer-funded, instead relying on proceeds from bond holdings and fees from member banks. Rising costs, inflation, and asbestos removal were cited as reasons for the budget overruns.
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Independence vs. Interference
The controversy underscores growing tensions over the Fed’s independence, particularly amid Trump’s repeated calls for interest rate cuts. Despite mounting attacks, Powell remains in office, and legal experts suggest there is no basis for his removal unless misconduct can be proven.
(Disclaimer: This slideshow has been sourced from AP)
(Disclaimer: This slideshow has been sourced from AP)