Powell letter addresses White House criticism of Fed renovations
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The letter from Federal Reserve chair Jerome Powell largely repeated information available on a new Frequently Asked Questions page on the Fed’s website about the construction project.
PHOTO: REUTERS
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US Federal Reserve chairman Jerome Powell in a July 17 letter countered criticisms levelled at the central bank by a top White House official over a US$2.5 billion (S$3.2 billion) renovation project.
“We take seriously the responsibility to be good stewards of public resources as we fulfil the duties given to us by Congress on behalf of the American people,” Mr Powell wrote in a letter addressed to Mr Russ Vought, director of the White House Office of Management and Budget.
Mr Powell’s letter, which largely repeated information available on a new “frequently asked questions” page on the Fed’s website about the construction project, was in response to correspondence from Mr Vought on July 10.
In that letter, Mr Vought characterised the renovation as an “ostentatious overhaul” and criticised the project’s costs, while asking Mr Powell to provide details about the renovation within seven business days.
At issue is the Fed’s renovation of two historic buildings at its headquarters in Washington.
President Donald Trump, Mr Vought and other allies of the President have seized on the project’s increased costs
The criticisms over the construction have coincided with a continued push from Mr Trump and administration officials for the Fed to lower interest rates.
Fed policymakers have held rates steady so far in 2025, as they wait for more information on how Mr Trump’s policies on tariffs and other economic issues will affect inflation and the labour market.
That on-hold stance has provoked Mr Trump’s ire towards Mr Powell
Republican Representative Anna Paulina Luna of Florida said on July 17 in a post on X that she is “criminally referring” Mr Powell to the Justice Department to “investigate perjury” regarding the renovation. Such referrals by lawmakers are not legally binding. BLOOMBERG
