Renovation Defense by the Federal Reserve

The Federal Reserve has recently taken additional steps to defend its ongoing renovations at its Washington headquarters. The Trump administration has accused the project, which is estimated to cost around $2.5 billion, of mismanagement, prompting a defensive response from the central bank.

In response to these accusations, the Fed released a virtual tour of the construction site on their website, showcasing the removal of hazardous asbestos and the installation of blast-resistant windows. Additionally, the bank highlighted modifications made to its original renovation proposal submitted to a lesser-known planning authority in 2021.

Administration’s Focus on Renovation Costs

The renovation project has become a focal point for the Trump administration’s efforts to undermine Powell’s leadership at the Federal Reserve. The administration has targeted the alleged cost overruns and initially proposed luxury features, such as new water fountains and a rooftop terrace for staff, which have now been excluded from the revised plans.

Moreover, the Fed confirmed that its headquarters will not include amenities like a VIP dining room or private elevators, features that had previously drawn criticism from the White House.

Calls for Construction Site Tour

James Blair, the White House deputy chief of staff, has publicly expressed interest in visiting the construction site. Rejecting a proposed after-hours tour by the Fed, he stated, “We want to see what’s going on.” Blair has even gone as far as to describe the Fed’s headquarters as the “Taj Mahal on the National Mall.” His criticisms have included a meme comparing Powell to Marie Antoinette, insinuating a disconnect between the Fed’s actions and the realities faced by the public.