Fed's Powell responds to Trump's concerns about central bank's $2.5 billion headquarters renovation

Federal Reserve Chairman Jerome Powell is pushing back on the Trump administration saying the central bank has spent too much on renovation its headquarters. 

Powell sent a letter Thursday to Powell sent a letter to Office of Management and Budget Director Russ Vought in response to OMB director's letter last week criticizing the chairman's management of the $2.5 billion renovation, which is $700 million over budget, CNN reported.

Vought argues Powell approved extravagant features including “rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble.” 

He also said the project is further evidence of an ongoing pattern of fiscal mismanagement at the bank. 

“The President is extremely troubled by your management of the Federal Reserve System,” Vought wrote. 

The OMB director also suggested that Powell may have misled Congress in his testimony about the renovations when he denied these allegations.

Powell responded on Thursday, saying that the renovations have been overseen by the Fed's board and inspector general, and that "the Board sought and received feedback and perspectives from a wide range of external entities, including approval from the National Capital Planning Commission (NCPC)."

The renovations were first approved by the board in 2017.

Powell also said this is the first "comprehensive renovation" of the central bank's two buildings since their construction in the 1930s, which had only had periodic work done "to keep these buildings occupiable."

"Both buildings were in need of significant structural repairs and other updates to make the buildings safe, healthy, and effective places to work, including the removal of asbestos and lead contamination, complete replacement of antiquated systems such as electrical, plumbing, heating, ventilation, and air conditioning, as well as fire detection and suppression systems," Powell wrote.

He added that since the NCPC approved the renovation plan in 2021, "the Board has made a small number of design changes to scale back or eliminate certain elements and has added no new elements. These changes were intended to simplify construction and reduce the likelihood of further delays and cost increases."

Powell also explained that there will be no “roof terrace gardens,” but that a parking lot is being constructed under the building, meaning the ground-level front lawn will be a “roof” for the parking structure. Also, marble from Georgia will be used in places where the original marble structure was damaged, he said.