The Federal Reserve’s $2.5 billion renovation project has sparked controversy over the use of marble, with the White House attempting to use the expense as a pretext for removing Chair Jerome Powell. However, it was actually Trump appointees who pushed for the extensive use of marble in the building.
According to commission minutes, Trump appointees requested more “white Georgia marble” for the facade, which was ultimately added to the project despite initial plans for glass walls. The cost overruns and hefty price tag have raised eyebrows, with some experts suggesting that the marble additions may be the root cause of the expenses.
Trump has argued that inflation is not a concern, so the Fed can slash interest rates to encourage borrowing. However, Powell and other Fed committee members are waiting to see if Trump’s tariffs will lift inflation, which higher interest rates could help blunt. The White House claims that Powell deceived lawmakers during congressional hearings, but experts say there may be more to the story.
The dispute over renovation costs and architecture has sparked a broader debate about whether Trump can unilaterally fire Powell after the Supreme Court described the Fed as having protections against abrupt firings. The situation highlights the tension between the White House’s demands for transparency and the central bank’s independence, raising concerns that financial markets may be affected by the dispute.
Experts argue that the renovation project is not just about aesthetics but also about cost management. “Stone buildings don’t necessarily have to cost a fortune,” said Duncan Stroik, a former commission member. The controversy surrounding the marble facade has cast a shadow over Powell’s leadership and raised questions about the Fed’s ability to navigate the complex relationship between politics and monetary policy.
Source: https://apnews.com/article/powell-trump-federal-reserve-16a3a78bab27f44e058d69829a8dcfa9