Fed Chair Powell pushes back at allegations of wrongdoing in renovation project

ISTANBUL

The US Federal Reserve chair has hit back at allegations of wrongdoing in renovations to the central bank’s Washington headquarters, saying changes to the 1930s-era buildings were badly needed, duly approved, and transparent.

In a late Thursday letter to White House Office of Management and Budget head Russell Vought, Jerome Powell said information on the project was added to the Fed’s website as a matter of transparency, and that this information supported his June 25 appearance before a US Senate committee.

Stating that they take seriously their responsibility to make the best use of public resources, Powell said: “We have taken great care to ensure the project is carefully overseen since it was first approved by the Board (of Governors) in 2017.”

Members of the Fed board approve the budget of the project every year, he said.

“The project is large in scope because it involves the renovation of two historic buildings on the National Mall and that were first constructed in the 1930s. While periodic work has been done to keep these buildings occupiable, neither building has seen a comprehensive renovation since they were first constructed,” he wrote.

Powell stressed that the project is proceeding under a plan approved by the National Capital Planning Commission, and that no elements have been added to the plan, except for a small number of design changes to simplify construction and avoid further delays or cost increases.

Noting that the structure in the project called a “garden terrace” is a “vegetated roof” used to help stormwater management and increase building efficiency and roof life, Powell said no “VIP dining rooms” or “VIP elevators” were built as part of the project.

In a letter sent to Powell last week, Vought raised questions about the renovation and asked Powell to answer them within seven business days.

US President Donald Trump has accused Powell of misleading Congress about the project, saying: “This is a renovation. How do you spend $2.5 billion? And he didn’t have proper clearance.”

Trump is a frequent critic of Powell, especially over his reluctance to cut interest rates.

Trump also said that this week that he was “surprised he (Powell) was appointed” and called him a “terrible Fed chair.”

Powell was appointed to the position in 2018 by Trump himself. His tenure was extended by then-President Joe Biden in 2022.

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