Fed's Powell asks watchdog to take fresh look at renovation project, Politico reports
Powell called on the Fed's inspector general, Michael Horowitz, to examine the project's cost, which has ballooned to $2.5 billion, leading to allies of President Donald Trump to call for Powell to be held accountable.
Trump has repeatedly criticized Powell over interest rates and said the Fed chair should resign, but the president does not have the power to fire him over a monetary policy dispute.
Recent comments from White House economic adviser Kevin Hassett on criticism of the Fed's renovation costs have confirmed the view that the Trump administration is actively exploring those costs and Powell's testimony about the project as a possible avenue to try to fire the Fed chief well before his term as chair ends in May 2026.
The lawmakers addressed in the reported Powell letter were Republican Senate Banking Chair Tim Scott and Democratic Senator Elizabeth Warren, the top Democrat on the committee.
"The Chairman looks forward to receiving additional information about the costly renovations at the Fed's headquarters," a spokesperson for Scott said in response to the reported letter, adding the letter was consistent with improving transparency. The Fed had no immediate comment.
Powell wrote in the letter cited by Politico that the watchdog has had "full access to project information on costs, contracts, schedules, and expenditures and receives monthly reports on the construction program."
Powell, who was nominated by Trump in late 2017 to lead the Fed and then nominated for a second term by then-President Joe Biden four years later, has said he intends to serve out his term as Fed chief, which ends on May 15.
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