Trump Allies Open New Front with Powell Over Fed Building Renovation

Trump Allies Open New Front with Powell Over Fed Building Renovation

In an escalating feud between President Donald Trump and Federal Reserve Chair Jerome Powell, the White House and Republican allies have launched a new line of attack focused on the Fed's ongoing $2.5 billion renovation of its Washington, D.C., headquarters. This criticism, which surfaced prominently recently, accuses Powell of mismanaging the project and potentially misleading Congress about its features, framing it as an example of extravagant spending amid economic pressures on everyday Americans. The move appears to build a case to pressure or even remove Powell, who has resisted Trump's calls for interest rate cuts.

Details of the Fed Renovation Project

The renovation targets the Fed's main headquarters on the National Mall and an adjacent historic building to consolidate operations. Planning began years ago, with documents submitted to the National Capital Planning Commission in 2021 and approvals secured. Initial plans included features like a private elevator to an executive dining room, rooftop gardens, beehives, and water features, which drew media attention for their perceived luxury. However, costs have overrun, reaching $2.5 billion as reported in a 2023 Wall Street Journal article. Powell has stated that many of these elements—such as beehives, water features, and a roof terrace garden—were scrapped and are "not in the current plan," emphasizing that media reports have highlighted "inflammatory things" no longer included.

Key Accusations from Trump Allies

The criticism intensified with a letter from Russ Vought, director of the Office of Management and Budget (OMB), to Powell on July 10, 2025, expressing that Trump is "extremely troubled by your management of the Federal Reserve System" and questioning an "ostentatious overhaul" of the Fed's real estate. Vought suggested that if high-end features were removed without proper updates, the project might violate the National Capital Planning Act, implying deception or non-compliance. Sen. Tim Scott (R-S.C.) echoed this during a hearing, stating, "when senior citizens can barely afford Formica countertops, it sends the wrong message to spend public money on luxury upgrades that feel more like they belong in the Palace of Versailles than a public institution." Kevin Hassett, director of the National Economic Council, added that Powell's future depends on addressing renovation costs, warning against the Fed acting like it can "print money and toss it around willy nilly." Former Fed Governor Kevin Warsh, a potential Powell replacement, called for "regime change" at the Fed to enable rate cuts and a broader overhaul.

Broader Context of the Trump-Powell Feud

This renovation scrutiny is the latest front in a long-running conflict. Trump has repeatedly lambasted Powell for not aggressively lowering interest rates, accusing the Fed of ignoring federal debt-service costs. Trump has clarified his plans to replace Powell when his term as chair expires in May 2026 with someone more aligned with rates. The Federal Reserve Act grants the Fed "sole control" over its buildings, allowing it to "maintain, enlarge, or remodel" without external interference, a provision dating back to the Fed's independence from the Treasury in 1951. Critics like Peter Conti-Brown from Wharton argue the attacks are partisan, driven by rate dissatisfaction rather than genuine oversight, noting, "To the extent that Fed independence counts for anything, it counts for this."

Potential Implications

Allies suggest the renovation could provide "cause" for firing Powell from the Board of Governors—a high legal bar, but one the administration is exploring to oust him early. This could undermine Fed independence, erode public trust, and reinforce perceptions of the Fed as out-of-touch, as noted by Columbia law professor Kathryn Judge. If successful, it might lead to a more politically influenced Fed, impacting monetary policy amid ongoing economic debates.

Responses and Defenses

Powell has rebutted the claims in congressional testimony, denying the inclusion of controversial features and emphasizing the project's necessity. The Fed has not issued a detailed public response to Vought's letter, but officials maintain the renovation complies with laws and has been transparent since 2021. In a recent Fox interview, Trump ally Scott Bessent, a potential Treasury secretary, declined to criticize Powell on the refurbishment, focusing instead on broader policy. Experts warn that such attacks, if politically motivated, threaten the Fed's credibility and autonomy.

标签:   游戏头条 资讯头条 ggamen科技资讯 ggamen科技 ggamen科技资讯头条 科技资讯头条 ggamen游戏财经 新闻网 科技新闻网 科技新闻 ggamen ggamen游戏新闻网 科技新闻 科技新闻网 新闻网 ggamen游戏财经 科技资讯头条 ggamen科技 ggamen科技资讯 游戏头条 ggamen游戏新闻网 科技新闻网 新闻网 ggamen游戏财经 科技资讯头条 ggamen科技资讯头条 ggamen科技 ggamen科技资讯 资讯头条 游戏头条