Powell Orders Review of Fed’s $2.5B Renovation Amid Trump Pressure

U.S. Federal Reserve Chair Jerome Powell has requested a renewed investigation into the ballooning costs of the Federal Reserve’s building renovations, now estimated at $2.5 billion, according to a report from Politico. In a letter to lawmakers, Powell asked the Fed’s inspector general, Michael Horowitz, to reexamine the project’s expenses, contracts, and timelines.

This move comes amid growing political pressure, particularly from allies of former President Donald Trump, who are demanding accountability for the escalating costs. Trump, a longtime critic of Powell over interest rate policy, has called for his resignation but lacks the authority to remove him over disagreements on monetary policy.

White House economic adviser Kevin Hassett recently acknowledged the administration’s scrutiny of the renovation project. This has fueled speculation that the Trump camp may be exploring the building project as a potential route to oust Powell before his term ends in May 2026.

Powell, initially appointed Fed Chair by Trump in 2017 and later reappointed by President Joe Biden, reaffirmed his commitment to serve out his full term. In the letter, Powell emphasized that the inspector general already has “full access to project information” and receives monthly updates on the construction program.

The letter was addressed to Senate Banking Committee Chair Tim Scott (R) and Senator Elizabeth Warren (D), both of whom have shown bipartisan interest in transparency surrounding the Fed’s operations. A spokesperson for Senator Scott stated the chairman looks forward to further details about the renovations, underscoring the push for oversight.

The Federal Reserve has not issued an official comment on the matter. The renewed focus on renovation costs adds another layer to the political tensions surrounding the central bank’s leadership and policy decisions.