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Politico
2 days ago
- Business
- Politico
FICO ramps up lobbying amid Pulte attacks
With Daniel Lippman FICO LOBBIES UP AGAIN: Fair Isaac Corp., the financial analytics company that produces FICO credit scores, brought on a new outside lobbying firm last week after pouring a record amount into lobbying efforts during the second quarter of the year, amid a volley of attacks from the head of the Federal Housing Finance Agency. — John McMickle of North South Government Strategies began lobbying for FICO on July 24 on issues related to competition in credit scores, according to a disclosure filing. The firm joins a lobbying operation that spent $460,000 from March through June, an all-time high for FICO and more than double what FICO spent on federal lobbying during the first quarter of the year. — FICO's surge in lobbying expenditures came as top Republicans in Washington have ramped up their attacks on the company — whose scores inform the vast majority of consumer credit decisions — over its dominance of the credit score market. Sen. Josh Hawley (R-Mo.) in April renewed an earlier call for the Justice Department to launch an antitrust probe after FICO raised its prices again. — But one of FICO's biggest critics over the past few months has been Bill Pulte, who took over in March as head of the Federal Housing Finance Agency and installed himself atop Fannie Mae and Freddie Mac. When he hasn't been agitating on X for the firing of Fed Chair Jerome Powell, Pulte has been whacking FICO over its price hikes and deriding the company as a 'monopoly who has ripped off Americans for decades.' — Earlier this month, Pulte announced that for the first time, mortgage lenders could choose to accept either a FICO credit score or one from a competitor known as VantageScore 4.0 when originating loans backed by Fannie Mae and Freddie Mac. VantageScore is a product of the three leading consumer credit bureaus — Experian, Equifax and Transunion — which supply the underlying data for both credit score models. — The move fulfilled a yearslong campaign to inject more competition into credit scoring, with the goal of increasing access to credit by weighing alternate data such as rent and utility payments in credit ratings. The change also came amid record lobbying spending by VantageScore, which dropped $160,000 on influence efforts last quarter, up from $115,000 in Q1, disclosures show. — Even as FICO has said it welcomes competition in the space, the company argues that VantageScore 'lowers critical and time-tested credit scoring criteria.' That could increase the likelihood that lenders, which are currently able to choose which score to accept, opt to maximize loans by relying on a riskier scoring model, FICO said in a blog post. — 'The 2008 financial crisis taught us the cost of racing to the bottom with lax origination standards,' FICO wrote, echoing a point made by the Wall Street Journal's editorial board days earlier. — A recent white paper published by FICO contends that its newer scoring model, which incorporates similar alternate financial data but hasn't yet been implemented by FHFA, outperformed VantageScore — a development cheered by Pulte. — 'Why is our score the industry standard? … It's really the best system,' FICO CEO Willam Lansing argued last week in an interview on CNBC. Lansing maintained that the pressure from Washington was only a 'hiccup' that would eventually be sorted out. Happy Tuesday and welcome to PI. Before you head out on your August recess adventures, drop me a line with influence tips to chase while the city quiets down. Add me on Signal at caitlinoprysko.17, email me at coprysko@ and be sure to follow me on X: @caitlinoprysko. FIRST IN PI: The National Taxpayers Union has launched a six-figure ad blitz pressing the Trump administration to keep up the fight against the European Union's tech antitrust rules, which emerged from this weekend's U.S.-EU trade deal unscathed — in spite of intense pressure from Silicon Valley. — Commerce Secretary Howard Lutnick, who last month tied the EU antitrust rules to the outcome of the trade negotiations with the bloc, reiterated in an interview on CNBC today that Europe's digital services tax and other 'attacks on our tech companies' are still 'on the table' as negotiators hammer out the details of the trade deal. — 'Europe benefits from American innovation while treating U.S. tech like a piggy bank,' NTU says in one ad that's been running in POLITICO's West Wing Playbook. 'The President should secure commitments to end discriminatory digital regulations, ensure equal treatment for American firms, pause new EU measures that disproportionately impact U.S. interests, and demand a pledge to stop targeting American businesses in the future.' — The ads from NTU, which has received funding from tech giants like Amazon, Google and Meta, urge President Donald Trump to 'get the deal right' and 'stop Europe's unfair attacks on American innovation.' The spots are also running in targeted locations across D.C. and Scotland, where Trump spent the past five days and announced the broad trade agreement with the EU. FIRST IN PI II: Federal Hall Policy Advisors will merge with Goldstein Policy Solutions, enhancing FedHall's deep expertise on digital asset and financial services policy and bringing on new tech, trade and telecom capabilities. Lon Goldstein will become a partner at FedHall, while Mali Smith will join as a director. — Goldstein's clients include T-Mobile and the American Medical Manufacturers Association in addition to crypto clients like the Blockchain Association and the Filecoin Foundation, while FedHall represents the Investment Company Institute, Aflac, VantageScore, Experian, Invesco, Allstate, the Managed Funds Association and more. The firms also have several shared clients: the DeFi Education Fund and Solana Institute. — 'We've known Lon for years and have always respected the way he operates. He is smart, strategic, and trusted by clients and policymakers alike,' FedHall partner Saat Alety told PI in an email. And during past collaborations, 'we've … seen firsthand how well our teams complement each other. The conversation about joining forces has been ongoing for a while, and it became clear that we could offer even more value to clients by working together under one roof.' UNDER PRESSURE: The Trump Organization has deflated plans pitched by a lobbyist for the home goods companies Instant Pot and Lenox to launch a line of MAGA-themed housewares amid trade and antitrust pressure from the government, The New York Times' David A. Fahrenthold and Ben Protess write. — Nestpoint Associates' Alex Olson, who registered to lobby for the brands back in May, previously told Semafor that 'other manufacturers owned by the same private-equity firm would also make Trump-themed products: snow globes, dinner plates, flatware, bedsheets.' — 'The companies would donate all proceeds to the fund to build Mr. Trump's presidential library. It looked like a page out of a new political playbook,' per the Times, but it turned into 'a cautionary tale about how not to exploit Washington's new rules.' — 'The New York-based private equity firm, Centre Lane Partners, wanted the Trump administration's help with tariffs and a looming antitrust inquiry. ... To get it, the firm's lobbyist augmented the usual backroom meetings with newly popular tactics in Mr. Trump's second term: over-the-top public flattery of the president and gifts to his cause. In this case, it backfired.' — The announcement came 'without seeking the Trump Organization's permission to use its trademarks or offering to give the president's company a cut. After The New York Times asked the Trump Organization about these plans, the company's lawyers moved quickly to stop them.' ANNALS OF ETHICS: 'As of last week, Mark Green is no longer a member of Congress. But before he resigned — and in the months leading up to his announcement that he was stepping down to pursue a business opportunity — Green admits he was in a delicate position,' NOTUS' Reese Gorman writes. — ''Part of the reason why I was so cagey about it is if I go and tell you the name of the company while I'm still a sitting congressman, couldn't you make the accusation that I'm using my position to advertise my new company?' Green told NOTUS during a sit-down interview. 'Wouldn't that be inappropriate? Potentially unethical?'' — 'Green seemed to acknowledge that his position, serving as a representative while laying the groundwork for a mystery business venture, was a tricky one. But he maintained that he did nothing wrong, even as he suggested to NOTUS that he was pitching his idea to other members,' including House Speaker Mike Johnson. — 'Green's new venture is still a bit of a mystery. While he said the goal is to help American businesses expand overseas, he was 'reluctant' to tell NOTUS the name of the company. 'It's on my LinkedIn page,' Green said. (According to his LinkedIn, the name of the company is 'Prosimos.')'— Doug O'Donnell has joined the Big Four accounting firm KPMG as a senior managing director in KPMG's Washington National Tax practice, per Bernie Becker. O'Donnell retired from the IRS earlier this year after almost four decades at the agency, including multiple stints as acting commissioner. — Jesse Barba has joined Cengage Group as head of federal government affairs. He most recently served as head of global government affairs at Chegg Inc. and is a Cassidy & Associates and Marcia Fudge alum. — Amy Hasenberg-Elliott is now a director at FGS Global. She most recently was communications director for Sen. Katie Britt (R-Ala.), and is a Jim Risch and Pat Toomey alum. — Matt Lamy is joining Associated Equipment Distributors as a government affairs manager. He was previously a research analyst with McAllister & Quinn. — Ali Dukakis has been promoted to be director of communications at Brewer, Attorneys & Counselors. — Gina Metrakas is joining Capital One as the head of federal advocacy, per Morning Money. She most recently served as chief of staff to the secretary of Housing and Urban Development and was previously HUD's COO. — Tiffany Justice is joining Heritage Action as executive vice president. She is a co-founder of Moms for Liberty. — Vanessa Valdivia is now senior vice president at Original Strategies. She most recently was senior adviser to Sen. Alex Padilla (D-Calif.) and is a Jill Biden alum. — Hilary Borris is now senior political strategist and partnerships lead at Compete, heading its expansion in D.C. She previously was regional political director at House Majority PAC and is a DCCC alum. — Rick Stockburger has been named the inaugural CEO of the Foundation for Energy Security and Innovation. He previously was president and CEO of Brite Energy Innovators. New Joint Fundraisers Cooper Victory Fund (Cooper for North Carolina, DSCC, North Carolina Democratic Party - Federal) NC Cooper Senate Victory (DSCC, Cooper for North Carolina) New PACs American Muslim Public Affairs Committee Fund (PAC) ANNALISA STRAVATO FOR PRINCIPLES, INTEGRITY, REPUBLICAN EMPOWERMENT ASPIRE (PAC) BLUESTEM BIOSCIENCES INC PAC (PAC) Delivering for America PAC (Super PAC) Upper Pottsgrove United New Lobbying REGISTRATIONS Asset & Equity Corporation: International Brotherhood Of Electrical Workers Local 270 Blueforge Alliance: Blueforge Alliance Capitaledge Advocacy Inc. (Formerly Capitaledge Advocacy, LLC): Santa Barbara Metropolitan Transit District Federal Hall Policy Advisors, LLC: Farm Bureau Insurance Of Tennessee Jackson Walker L.L.P.: Gothams Energy LLC Lighthouse Point Government Relations: Ideal Electric Power Co Mcguirewoods Consulting (A Subsidiary Of Mcguirewoods LLP): Libra Solutions, L.P. Mcguirewoods Consulting (A Subsidiary Of Mcguirewoods LLP): Osteal Therapeutics, Inc. Mcguirewoods Consulting (A Subsidiary Of Mcguirewoods LLP): Town Of Dumfries, Virginia Mercury Public Affairs, LLC: Rand Corporation Mercury Public Affairs, LLC: Sv Management Switzerland Ag Mindset Advocacy, LLC: Lsp Generation Iv, LLC Ms. Laura Lawlor: Vertex Schaerr Jaffe LLP: Cellphire Therapeutics, Inc. Schaerr Jaffe LLP: Harmony Biosciences Management, Inc. The Ferguson Group: City Of Homer, Ak The Ferguson Group: City Of Oroville, Ca New Lobbying Terminations Digital Asset: Digital Asset Dragos: Dragos Mr. Ralph Johnson: Kiril Domuschiev
Vox
2 days ago
- Business
- Vox
The Trump administration attack dog you should pay attention to
is a senior politics correspondent at Vox, covering the White House, elections, and political scandals and investigations. He's worked at Vox since the site's launch in 2014, and before that, he worked as a research assistant at the New Yorker's Washington, DC, bureau. Bill Pulte is the director of the Federal Housing Finance Agency, tasked with overseeing Fannie Mae and Freddie Mac. Ricky Carioti/The Washington Post via Getty The Trump administration's loudest attack dog of late holds an unlikely position: director of the Federal Housing Finance Agency. The FHFA's 37-year old director, Bill Pulte, has been pounding the drums to get Federal Reserve chair Jerome Powell fired. He's publicly pressured Powell on social media, he gave Trump a draft letter that would have ordered Powell's firing, and he's tried to establish a pretext Trump could use to fire Powell. But Pulte has also played a broader role in Trump's retribution campaign. He's used his position to try and get two of Trump's Democratic enemies — Sen. Adam Schiff (D-CA) and New York Attorney General Letitia James — prosecuted for mortgage fraud. Some of his allies hope this is just the start, and that even bigger things lie in Pulte's future. 'Bill Pulte would be an exceptional pick to run the Federal Reserve,' venture capitalist Chamath Palihapitiya posted on X last week. 'Attack dog' is an unusual role for the director of the FHFA, who is charged with overseeing Fannie Mae and Freddie Mac — the government-backed companies crucial to the functioning of US mortgage markets. (Vox requested comment from Pulte through the FHFA for this story, but received no response.) The Logoff The email you need to stay informed about Trump — without letting the news take over your life. Email (required) Sign Up By submitting your email, you agree to our Terms and Privacy Notice . This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. But it's a good fit for Pulte. The grandson of the founder of a major home-building company, Pulte has demonstrated a remarkable knack for getting attention and building his public profile. He has 3 million followers on X, and his posts there have started to move markets, according to Bloomberg. Pulte has his enemies in the administration; the Wall Street Journal recently reported his anti-Powell campaign has 'irritated' some senior officials. One person is quite happy with him, though. After that Journal story was published, Trump posted that Pulte was doing an 'outstanding job,' and added: 'KEEP MOVING FORWARD, WILLIAM, DON'T LET THE RADICAL LEFT WEAKLINGS STOP YOU!' Who is Bill Pulte, and how did he get millions of social media followers? Housing is the Pulte family business. Pulte's grandfather, also named Bill, founded what eventually became one of the largest home-building companies in the US, PulteGroup. The younger Bill was barely done with college when, in 2011, he founded a Michigan-based private equity fund focused on the housing industry. The board included such local luminaries such as Rick DeVos (son of future Secretary of Education Betsy DeVos) and Scott Romney (brother of Mitt Romney). Grandpa Pulte died in 2018. The following year, then-31-year-old Bill got his first taste of national fame by going viral for giving people money. Pulte gave or offered to give sometimes hundreds of dollars, sometimes thousands or even tens of thousands, and he posted on Twitter about it. He called this 'Twitter Philanthropy.' (He insisted he was not giving away his inheritance money, but rather money he'd independently made.) Some of the giveaways were for people posting stories about why they needed help, others were purely random — but the common thread was that, if you wanted a shot at the cash, you needed to follow or retweet him on Twitter. (Following him was necessary so he could send you a direct message if you won, he explained.) In July 2019, Pulte said he'd give $30,000 to 'a veteran on Twitter' if President Trump retweeted him, and the president did so. All this proved highly successful at increasing Pulte's Twitter following, which rose from the low tens of thousands to 2 million in early 2020. But his relationship with the company his grandfather founded deteriorated. He lost his seat on PulteGroup's board of directors, after the board unanimously voted not to renominate him. The meme stock saga and online feuding With the novelty of Twitter Philanthropy worn off, Pulte found a new focus for his self-promotion: the meme stock craze. Pulte particularly cultivated the beleaguered Bed Bath & Beyond investors, many of whom hoped this wealthy and successful philanthropist would somehow find a way to get them back the money they'd lost. In January 2024, Pulte released a statement saying the 'Pulte family' would purchase Bed Bath & Beyond bonds so they could 'demand answers' for wiped-out retail shareholders. The Pulte Family Charitable Foundation, which he is not involved with, wanted to be excluded from this narrative, and released a statement distancing themselves from him. Pulte fired back with an X post calling his aunt, Nancy Pulte Rickard, who heads the foundation, 'a fake representative of the Pulte Family.' He added that his aunt 'is angry she wasn't in my grandpa's will when I, the namesake, was in the will.' As it became clear that there would be no miraculous recovery for $BBBY shareholders, Pulte amassed his share of dedicated online haters, who mocked him as 'Ploot' and chronicled what they saw as his strange behavior on subreddits like /r/GME_meltdown. These haters would soon watch agog as Pulte, who they viewed as a 'fraud and weirdo,' suddenly scored a powerful position in the federal government. This, one Redditor wrote, was 'an absolutely wild plot twist.' Pulte and the Federal Housing Finance Agency Through all this time, Pulte's public persona hadn't been particularly political. But he figured out a good way to gain entry into Trumpworld — by, again, giving people money. He gave $500,000 to a pro-Trump Super PAC in 2022. He'd also donated to Turning Point USA, the young conservatives' group co-founded by Charlie Kirk. (Kirk is a close ally of Donald Trump Jr.) After Trump won in November 2024, the New York Post floated Pulte as a potential Housing and Urban Development secretary, quoting a 'source' calling him 'probably overqualified' and stressing those past donations to vouch for his loyalty to Trumpworld. Trump nominated him for FHFA director instead, and before his confirmation hearings, he deleted tens of thousands of his old tweets, to Senate Democrats' annoyance. Shortly after he was confirmed in March, Pulte posted on X: 'You didn't really think I'd stop tweeting did you'. The FHFA job is a consequential one. Fannie Mae and Freddie Mac were placed under government conservatorship during the 2008 financial crisis, but the Trump team is now planning to reprivatize them. It is unclear how involved Pulte is in these discussions (one report claimed he'd been 'largely cut out'). Pulte has, however, been quite quick to use his position to go after Trump's enemies — specifically, James, the New York attorney general, and Sen. Schiff, who have for years been leading figures in Democrat-led investigations of Trump. Pulte took public credit for the Schiff investigation, posting on X: 'Fannie Mae's Financial Crimes Division concluded that Mr. Schiff has engaged in a sustained pattern of possible Mortgage Fraud.' A confidential Fannie Mae memo alleging misconduct by Schiff — a memo addressed to Pulte — was provided to the Washington Post earlier this month. Both Schiff and James have denied any wrongdoing and said they are being targeted politically, and it remains to be seen whether DOJ will charge them. Federal prosecutors pursuing complex corruption cases against public officials have long found the mortgage fraud statute to be a useful tool — it's relatively easy to prove, and it carries a steep, 30-year maximum sentence. (According to David Simon, federal prosecutors in Baltimore called it the 'Head Shot.') But it's not yet clear whether they have enough to make and sustain either case. With Powell having earned Trump's ire for his reluctance to lower interest rates, Pulte started going after him, too. For the past two months, he's been publicly criticizing the Fed chair and urging him to resign. Since the law only permits Trump to fire Powell 'for cause' — meaning 'inefficiency, neglect of duty, or malfeasance in office' — Pulte has been laying the groundwork for that. He's been arguing that the expensive renovation of the Fed's headquarters is a 'scandal' that merits Powell's firing for misconduct. 'I remain optimistic Jerome Powell will do the right thing, and as early as next week,' Pulte posted Friday on X. Could Trump be considering replacing Powell with Pulte himself? So far, National Economic Council director Kevin Hassett is said to be the frontrunner. And a Pulte nomination may not be received kindly by the Senate or the markets. But maybe Pulte can post his way into the job. After all, social media has gotten him this far.
Business Insider
6 days ago
- Business
- Business Insider
Pulte Pressures Powell to Slash Rates ‘As Early as next Week'
Federal Housing Finance Agency Director Bill Pulte toured the Fed's under-construction headquarters yesterday with President Trump. While Trump eased up on his calls for Powell to resign, Pulte has upped the ante. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. 'I remain optimistic Jerome Powell will do the right thing, and as early as next week,' said Pulte in an X post on Friday, likely a reference to the Federal Open Market Committee (FOMC) meeting on July 29-30. Pulte previously called for the Fed to lower rates and a congressional investigation of Powell over the Fed's $2.5 billion renovation of its Washington, D.C. headquarters. Will Powell Step Down? Earlier this month, Pulte noted that he was ' encouraged ' by reports that Powell would step down despite no confirmed reports on the subject. This morning, CNN reported that the Fed Chair had confided in close contacts that he would serve the remainder of his term in order to retain Fed independence from political bias. Powell's term ends in May 2026. 'I've asked him, and he says no, that would reduce the independence of the Federal Reserve,' said South Dakota GOP Senator Mike Rounds. Additionally, the Fed will likely keep rates steady next week. CME's FedWatch tool assigns 97.4% odds of the rate staying between 4.25% and 4.50%. Economic Indicators Dashboard.
The Hill
6 days ago
- Business
- The Hill
Much ado about FICO — if it ain't broke, don't fix it
Addressing housing costs is — and should be— a priority for the Trump administration, and there is no shortage of opinions in the housing ecosphere on how to make home ownership more affordable. What won't move the needle even a micron are misguided policies based on the idea that a single company is causing all of our housing woes. A recent op-ed absurdly claimed that 'for many Americans, [home ownership] may be a dream deferred or derailed altogether due to just one factor: Fair Isaacs Corporation.' Topping out at a cost of less than $15 for a mortgage origination, FICO's score represents 'less than two tenths of one percent' of the average closing cost for a home mortgage. In fact, there is no single component of closing costs that costs less. To allege that FICO stands as a bar to home ownership is akin to saying the cost of pens and paper is a bar to attending college. Disappointingly, the current Federal Housing Finance Agency Director, Bill Pulte, has adopted a similar position. At a time when America needs certainty and stability to pull out of its worst housing crunch in 40 years, Pulte has been spreading misinformation that serves neither the president nor consumers. In contravention of the Trump administration's efforts to undo anti-consumer Biden administration policies, Pulte is promoting a two-score system for Fannie Mae and Freddie Mac, embracing the crown jewel proposal of Biden's housing policy. Pulte has declared it will allow ' Americans to use their RENT to qualify for a mortgage. ' For someone in his position, Pulte demonstrates a concerning lack of knowledge of what he refers to as the 'Credit Score Ecosystem.' He is behind the times. FICO score models already account for rental payments and utility bills — provided they are made available to the credit bureaus. The greatest barrier to the inclusion of rental data is that most landlords don't report that information to credit bureaus. But Pulte offers no remedy for this. Echoing the Biden administration, Pulte claims his policy will bring down closing costs, But like the Biden administration, he never bothers to explain how. There is a good reason for this: The policy doesn't and won't reduce costs. Banks having to access two separate tri-merge reports — FICO and VantageScore — will just increase costs for consumers, just as applying for two different mortgages costs more than applying for one. Perhaps of greater concern, Pulte has been making his ill-informed pronouncements on X, fishing for — and receiving — praise through likes and re-postings. What is missing is a coherent policy prescription addressing housing on his agency's website. FICO scores are valued because FICO is independent. The three main credit bureaus — Equifax, Experian and TransUnion — have joined forces to create VantageScore. The unstated goal of the bureaus is to market a vertically integrated credit score, expanding their influence and control — and their profitability. Serving as both the repositories of consumer data and the score provider is an invitation for the bureaus to corner the consumer credit market. FICO, alternatively, is the sole independent check against the credit bureaus. Pulte further fails to articulate how introducing an entirely new and unproven scoring model enhances security and stability in home lending. In the 30 years since FICO has served as the sole credit scoring model accepted by Fannie Mae and Freddie Mac, no other model has proven itself to provide any advantage or improvement over its predictive value in minimizing lending risk. By embracing Vantage, Pulte isn't just rushing in to 'fix' what isn't broken — he is, by definition, creating uncertainty and higher risk in mortgage lending, which is the exact opposite of the Federal Housing Finance Agency's directive to ensure lending stability and security. This latest barrage of X posts, heralding a misguided Biden administration policy being brought to full fruition, draws into question whether director Pulte is up to the job. As the multi-millionaire scion of a home developer, surely he knows the housing business. It is worth noting that his grandfather built PulteGroup, one of the nation's largest home construction firms, on a home mortgage market using the proven single-score application model. Solving the current housing crunch requires serious and possibly tough policy prescriptions, not policies that increase costs and threaten stability. What should concern everyone is whether Pulte understands and appreciates policies that minimize risk and prioritize stability and lending security. Gerard Scimeca is chairman and general counsel for CASE, Consumer Action for a Strong Economy, a free-market oriented consumer advocacy organization he co-founded.
Politico
24-07-2025
- Business
- Politico
The Fed, under fire from Trump, gives media a sneak peek at HQ construction
The project has become entangled with Trump's campaign to pressure Fed Chair Jerome Powell to lower interest rates. So much so that the White House has considered whether to attempt to use the renovation, which began in mid-2022 and is set to be completed by 2027, as a means to oust Powell — a strategy that legal advisers have warned would likely not hold up in court. Trump has raged at Powell for refusing to cut rates since December, saying he's costing American taxpayers $1 trillion a year in higher borrowing costs. The Fed chair says he expects to lower rates sometime later this year but has held off as he and his fellow officials watch whether Trump's sweeping tariff regime significantly pushes up inflation. Trump is set to visit the headquarters later this afternoon, along with other officials, including White House Budget Director Russ Vought, Federal Housing Finance Agency Director Bill Pulte and White House deputy chief of staff James Blair. According to a pool report from reporters granted access to the active construction site, Fed staff said tariffs and inflation have also pushed up the cost of materials, along with new security features on the historic building. 'The Fed staff noted that blast-resistant windows are now being used as part of a general upgrading of the building's security,' according to the report. 'This is new. The Fed is expected to have the highest level of security according to Department of Homeland Security standards, which adds to expense.' The Fed has also pointed to the need to resolve asbestos and lead contamination issues. The staff said there had been two changes to the project since it was approved by the National Capital Planning Commission, which oversees local urban planning: There will be no seating on the rooftop 'partly because of the appearance that it was [an] amenity.' And they scrapped plans for two water fountains in front of an adjacent building that is also under construction. The project includes the historic Eccles building, which was built in 1937, and an adjacent building more recently purchased by the Fed. 'The building was purchased by the Fed for about $40 million from [the General Services Administration], and was rated 'poor' by the GSA's consultant,' according to the pool report. 'Both buildings are being upgraded to come in compliance with the 2018 International Building Code, which has required upgrades to the electrical and HVAC systems. The project has also incorporated new seismic standards to protect the building during earthquakes.' Fed staff told the reporters that it would have been less expensive to just build a new building rather than restore the two historic properties. The central bank is self-funded, but its profits are given to the U.S. Treasury annually.
