Live Updates: Trump visits Fed as DOJ eyes Epstein ally Maxwell
27 minutes ago
11:43 EDT
Howard Schneider and Ann Saphir
The spiraling cost of the Federal Reserve's years-long renovation of two historic buildings in Washington, D.C., has become the latest flashpoint in the Trump administration's escalating pressure campaign on Powell.
Here are five things to know about the renovations:
1. What are the buildings the Fed is renovating?
They are the Eccles Building, constructed between 1935 and 1937 as the Fed's headquarters, and the 1951 Constitution Avenue Building, completed in 1932 for the U.S. Public Health Service.
2. How much are they over budget?
Russell Vought, the director of the Office of Management and Budget, says the cost overrun is "$700 million and counting." The Fed's budget shows the project's current estimated cost at $2.46 billion up from $1.88 billion in 2024, a difference of about $580 million.
The document also shows that the Fed eliminated the planned renovation of a third building, cutting about $510 million in costs.
3. Why are they over budget?
Higher-than-estimated labor and materials costs, design changes to preserve the historic buildings and their appearance, and unforeseen problems including lead contamination in the ground and higher-than-anticipated amounts of asbestos.
4. What needs to be done?
The buildings required new plumbing, electrical, heating, water, and other infrastructure, as well as updating to allow access for people with disabilities, a basement for one of the buildings and an addition for the other to make enough room for existing staff currently occupying other leased offices.
5. Who has oversight of the project?
The Fed by law has authority to determine its spending on capital projects. Its Office of Inspector General receives monthly reports on the project, conducted a review in 2021, and is now charged with conducting a fresh review.
Who was Jeffrey Epstein?
32 minutes ago
11:38 EDT
Epstein was a well-connected and wealthy U.S. financier and convicted sex offender.
Known for socializing with politicians, celebrities and royalty, he once counted Trump and former President Bill Clinton as friends.
But the former hedge fund manager faced years of allegations that he sexually abused girls and young women. He first came under investigation in 2005.
In 2008, he pleaded guilty to Florida state charges of unlawfully paying a teenage girl for sex.
He was arrested on July 6, 2019 at a New Jersey airport after taking a private plane from Paris and pleaded not guilty to charges of sex trafficking involving dozens of underage girls as young as 14, from at least 2002 to 2005.
Epstein was found dead on August 10, 2019 in a New York jail cell where he was being held without bail. He was 66. The cause of death was ruled as suicide by hanging.
Prosecutors said a search of his townhouse, conducted under a warrant, uncovered evidence of hundreds, and perhaps thousands, of nude photographs of 'what appeared to be underage girls,' including some photos catalogued on compact discs and kept in a locked safe.
The case was dismissed after his death.
One of the most high-profile people associated with Epstein was Britain's Prince Andrew who was forced to step aside from public duties in 2019 over his association with the financier. Andrew has always denied any accusations of wrongdoing.
Sarah N. Lynch, Karen Freifeld and Brendan Pierson.
US DOJ to meet with Epstein associate Maxwell
11:31 EDT
Deputy Attorney General Todd Blanche said on Tuesday he expected to meet with in Ghislaine Maxwell, Jeffrey Epstein's long-time associate, in coming days.
Maxwell, a British socialite and Epstein's longtime girlfriend, is serving a 20-year prison sentence after being convicted of sex trafficking in 2021.
Epstein, a disgraced financier and sex offender, killed himself in a jail cell in 2019 while awaiting trial on sex-trafficking charges.
Several media outlets have reported that Maxwell is speaking with U.S. prosecutors on Thursday.
Blanche has said if Maxwell "has information about anyone who has committed crimes against victims, the FBI and the DOJ will hear what she has to say."
The possible meeting comes as Attorney General Pam Bondi has faced mounting pressure from Trump's supporters to release additional materials related to Epstein.
Trump knew Epstein socially in the 1990s and early 2000s.
During Mazwell's 2021 trial, the financier's longtime pilot, Lawrence Visoski, testified that Trump flew on Epstein's private plane multiple times. Trump has denied being on the plane.
Trump to visit the Federal Reserve Thursday
an hour ago
11:23 EDT
U.S. President Donald Trump, a robust critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday, the White House said.
It's a surprise move that escalates tension between the administration and the Fed.
Trump has lambasted Powell repeatedly for not cutting U.S. interest rates more aggressively, calling him a "numbskull" on Tuesday and musing publicly about firing him.
Adding fuel to Trump's ire, White House officials have accused the Fed of mismanaging the renovation of two historic buildings in Washington, D.C., suggesting poor oversight and potential fraud.
In a schedule released to the media on Wednesday night, the White House said Trump would visit the Fed at 4 p.m. (2000 GMT).
It did not say whether Trump would meet with Powell.
Trump's public criticism of Powell and flirtation with firing him have previously upset financial markets and threatened a key underpinning of the global financial system - that central banks are independent and free from political meddling.
We'll have the latest updates on all things Fed and Trump live on this page, stay with us.
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