Jerome Powell, the Chair of the Federal Reserve, has strongly denied claims that the Fed is spending recklessly highlighted by its renovation of the historic Marriner S. Eccles Building in Washington, DC which cost $2.5 billion.
Renovation Details:
In a comprehensively worded letter dated July 17, Powell defended the project as a badly needed structural change, insisting that the buildings (1930s and 1950s) need major repairs, asbestos and lead abatement, plumbing and HVAC replacements, electrical updates, fire detection improvements, accessibility changes. The renovation was first approved by the Fed’s Board of Governors in 2017 and since then it has been subject to oversight procedures internally including by the Fed’s inspector general as reported by the CNN.
Trump Administration’s Criticism:
The controversy began when Russell Vought, the director of the Office of Management and Budget under President Donald Trump, accused Powell in a publicly posted July 10 letter on social media of mismanaging the renovation and violating federal oversight protocols. Vought said the project involved an “ostentatious overhaul” and included too many extravagant upgrades, including rooftop terraces and VIP lounge areas.
Chairman Jerome Powell has grossly mismanaged the Fed.
While continuing to run a deficit since FY23 (the first time in the Fed’s history), the Fed is way over budget on the renovation of its headquarters.
Now up to $2.5 billion, roughly $700 million over its initial cost.… pic.twitter.com/lHK4cWlAvf
— Russ Vought (@russvought) July 10, 2025
Later, President Trump added that he thought the renovation project was “disgraceful” and stated that Powell’s mishandling of that project would almost be a fireable offense. However, legal scholars have noted that the Fed chair can only be removed “for cause,” meaning a lack of compliance (i.e., misconduct), not differences of opinion, policy, or budget.
Powell’s Rebuttal:
In his point-by-point response, Powell denied the presence of extravagant features. “There’s no new marble, no rooftop gardens, no beehives and no luxury dining rooms,” he wrote. He said elements like that were removed from the plan to simplify construction and avoid measuring the delay down to the last minute years ago. But backs also explained that the cost of the renovation has increased from $1.9 billion when it was approved by Congress in 2019 to $2.5 billion now.
I didn’t know this. Why is Jerome Powell spending money on renovations while holding rates high and choking Americans?
Powell’s reckless $1.9 Billion renovations warrant a full-fledged investigation.
Powell is allegedly spending $1.9 Billion on renovations including “rooftop… pic.twitter.com/FKsXDkl0qI
— Pulte (@pulte) June 24, 2025
Part of that rationale was due to inflation that developed after the pandemic in the areas of labor and materials to do construction as well as an increased need for borrowed space and the complexities of modernizing multiple structures on the National Mall. Powell said construction materials are also being sourced from 32 states and the District of Columbia to attempt to support local supply chains.
