The US Federal Reserve is facing a crisis as President Donald Trump and his allies are trying to pin blame on Chairman Jerome Powell for the massive cost overrun in the renovation of the Fed’s historic headquarters. The project, which began during Trump’s first term, has ballooned from an initial estimate of $1.9 billion to $2.5 billion.
Powell has taken responsibility for the project, stating that it was a complex and multi-step process that required careful oversight. However, Vought claims that Powell’s decision to make changes without consulting the planning commission is a sign of wrongdoing.
The controversy surrounds not just the cost overruns but also Trump’s demands for Powell to lower interest rates. While Powell has repeatedly expressed his disagreement with Trump’s stance on monetary policy, he remains committed to controlling inflation and keeping interest rates above what Trump wants.
Despite the tension, there are concerns that the renovation project is being used as a pretext to fire Powell. The issue of whether it’s fair to pin this on Powell is complex, considering the scale of the project and his prior involvement in overseeing its early stages.
As the controversy unfolds, questions remain about who is pushing for this backlash against Powell. While some point fingers at Vought and the White House, others suggest that Trump’s efforts are driven by a broader agenda to remake the US government.
The renovation of the historic headquarters is also seen as an ironic move given Trump’s own plans to beautify DC with classical architecture. The issue has sparked debate about the role of the Federal Reserve in maintaining public trust and its independence from politics.
Source: https://edition.cnn.com/2025/07/17/politics/powell-federal-reserve-renovation-trump-vought-explainer