Latest news with #NationalCapitalPlanningAct
5 days ago
- Business
Federal Reserve says building renovation complies with law, defends costs
WASHINGTON -- Federal Reserve Chair Jerome Powell on Thursday said the agency's renovation of two of its buildings is in compliance with plans approved by a local commission, disputing a White House suggestion that they may have violated the law by deviating from those plans. The letter is the lastest salvo in an escalating battle between the Federal Reserve, an independent agency charged with fighting inflation and seeking maximum employment, and the Trump administration. President Donald Trump has for months criticized Powell and the Fed for not lowering its key interest rate, which the president says would boost borrowing and accelerate the economy. Powell has said he wants to see how the economy responds to Trump's sweeping tariffs, which could raise inflation and slow growth, before making any moves. Trump has even threatened to fire Powell, though he has since backed away and said Wednesday it was 'highly unlikely' that he would take the unprecedented step of doing so. Firing the Fed chair could cause chaos in the financial markets. Several executives of Wall Street banks have said this week that the Fed's independence from day-to-day politics is crucial. Still, the Trump administration has seized on ballooning costs for the Fed's renovation of two century-old buildings to argue that Powell has mismanaged the project. The president can't fire the Fed chair because of a policy disagreement, but he could do so 'for cause,' which is widely seen as some kind of malfeasance or neglect. Last week, the president's top budget adviser, Russell Vought, wrote Powell a letter that said Trump is 'extremely troubled' by Powell's management of the project, which has risen in cost to about $2.5 billion, up from the Fed's initial estimate of $1.9 billion. Vought's letter also noted that Powell, in testimony before the Senate last month, said that the Fed removed some amenities that critics called ostentatious from its plans. Those plans had been approved by the National Capital Planning Commission in 2021. Vought said in his letter that if the renovation plans had changed, they were no longer 'in compliance with the approved plan" and may violate the National Capital Planning Act. Powell responded Thursday that since the Fed's plans were approved by the NCPC in September 2021, it has made only 'a small number of design changes to scale back or eliminate certain elements' and added that the changes weren't significant enough to 'warrant... further review.' 'The project is proceeding in accordance with the plan that the NCPC approved,' Powell wrote. The changes were intended 'to simplify construction and reduce the likelihood of further delays and cost increases,' Powell said in his letter. Powell also defended the cost of the renovation: 'Both buildings were in need of significant structural repairs,' including 'the removal of asbestos and lead contamination,' as well as the 'complete replacement of antiquated systems such as electrical, plumbing, heating, ventilation and air conditioning, as well as fire detection and suppression systems,' he wrote.
Yahoo
5 days ago
- Business
- Yahoo
Federal Reserve says building renovation complies with law, defends costs
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell on Thursday said the agency's renovation of two of its buildings is in compliance with plans approved by a local commission, disputing a White House suggestion that they may have violated the law by deviating from those plans. The letter is the lastest salvo in an escalating battle between the Federal Reserve, an independent agency charged with fighting inflation and seeking maximum employment, and the Trump administration. President Donald Trump has for months criticized Powell and the Fed for not lowering its key interest rate, which the president says would boost borrowing and accelerate the economy. Powell has said he wants to see how the economy responds to Trump's sweeping tariffs, which could raise inflation and slow growth, before making any moves. Trump has even threatened to fire Powell, though he has since backed away and said Wednesday it was 'highly unlikely' that he would take the unprecedented step of doing so. Firing the Fed chair could cause chaos in the financial markets. Several executives of Wall Street banks have said this week that the Fed's independence from day-to-day politics is crucial. Still, the Trump administration has seized on ballooning costs for the Fed's renovation of two century-old buildings to argue that Powell has mismanaged the project. The president can't fire the Fed chair because of a policy disagreement, but he could do so 'for cause,' which is widely seen as some kind of malfeasance or neglect. Last week, the president's top budget adviser, Russell Vought, wrote Powell a letter that said Trump is 'extremely troubled' by Powell's management of the project, which has risen in cost to about $2.5 billion, up from the Fed's initial estimate of $1.9 billion. Vought's letter also noted that Powell, in testimony before the Senate last month, said that the Fed removed some amenities that critics called ostentatious from its plans. Those plans had been approved by the National Capital Planning Commission in 2021. Vought said in his letter that if the renovation plans had changed, they were no longer 'in compliance with the approved plan" and may violate the National Capital Planning Act. Powell responded Thursday that since the Fed's plans were approved by the NCPC in September 2021, it has made only 'a small number of design changes to scale back or eliminate certain elements' and added that the changes weren't significant enough to 'warrant... further review.' 'The project is proceeding in accordance with the plan that the NCPC approved,' Powell wrote. The changes were intended 'to simplify construction and reduce the likelihood of further delays and cost increases,' Powell said in his letter. Powell also defended the cost of the renovation: 'Both buildings were in need of significant structural repairs,' including 'the removal of asbestos and lead contamination,' as well as the 'complete replacement of antiquated systems such as electrical, plumbing, heating, ventilation and air conditioning, as well as fire detection and suppression systems,' he wrote.
San Francisco Chronicle
5 days ago
- Business
- San Francisco Chronicle
Federal Reserve says building renovation complies with law, defends costs
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell on Thursday said the agency's renovation of two of its buildings is in compliance with plans approved by a local commission, disputing a White House suggestion that they may have violated the law by deviating from those plans. The letter is the lastest salvo in an escalating battle between the Federal Reserve, an independent agency charged with fighting inflation and seeking maximum employment, and the Trump administration. President Donald Trump has for months criticized Powell and the Fed for not lowering its key interest rate, which the president says would boost borrowing and accelerate the economy. Powell has said he wants to see how the economy responds to Trump's sweeping tariffs, which could raise inflation and slow growth, before making any moves. Trump has even threatened to fire Powell, though he has since backed away and said Wednesday it was 'highly unlikely' that he would take the unprecedented step of doing so. Firing the Fed chair could cause chaos in the financial markets. Several executives of Wall Street banks have said this week that the Fed's independence from day-to-day politics is crucial. Still, the Trump administration has seized on ballooning costs for the Fed's renovation of two century-old buildings to argue that Powell has mismanaged the project. The president can't fire the Fed chair because of a policy disagreement, but he could do so 'for cause,' which is widely seen as some kind of malfeasance or neglect. Last week, the president's top budget adviser, Russell Vought, wrote Powell a letter that said Trump is 'extremely troubled' by Powell's management of the project, which has risen in cost to about $2.5 billion, up from the Fed's initial estimate of $1.9 billion. Vought's letter also noted that Powell, in testimony before the Senate last month, said that the Fed removed some amenities that critics called ostentatious from its plans. Those plans had been approved by the National Capital Planning Commission in 2021. Vought said in his letter that if the renovation plans had changed, they were no longer 'in compliance with the approved plan" and may violate the National Capital Planning Act. Powell responded Thursday that since the Fed's plans were approved by the NCPC in September 2021, it has made only 'a small number of design changes to scale back or eliminate certain elements' and added that the changes weren't significant enough to 'warrant... further review.' 'The project is proceeding in accordance with the plan that the NCPC approved,' Powell wrote. The changes were intended 'to simplify construction and reduce the likelihood of further delays and cost increases,' Powell said in his letter. Powell also defended the cost of the renovation: 'Both buildings were in need of significant structural repairs,' including 'the removal of asbestos and lead contamination,' as well as the 'complete replacement of antiquated systems such as electrical, plumbing, heating, ventilation and air conditioning, as well as fire detection and suppression systems,' he wrote.
Winnipeg Free Press
5 days ago
- Business
- Winnipeg Free Press
Federal Reserve says building renovation complies with law, defends costs
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell on Thursday said the agency's renovation of two of its buildings is in compliance with plans approved by a local commission, disputing a White House suggestion that they may have violated the law by deviating from those plans. The letter is the lastest salvo in an escalating battle between the Federal Reserve, an independent agency charged with fighting inflation and seeking maximum employment, and the Trump administration. President Donald Trump has for months criticized Powell and the Fed for not lowering its key interest rate, which the president says would boost borrowing and accelerate the economy. Powell has said he wants to see how the economy responds to Trump's sweeping tariffs, which could raise inflation and slow growth, before making any moves. Trump has even threatened to fire Powell, though he has since backed away and said Wednesday it was 'highly unlikely' that he would take the unprecedented step of doing so. Firing the Fed chair could cause chaos in the financial markets. Several executives of Wall Street banks have said this week that the Fed's independence from day-to-day politics is crucial. Still, the Trump administration has seized on ballooning costs for the Fed's renovation of two century-old buildings to argue that Powell has mismanaged the project. The president can't fire the Fed chair because of a policy disagreement, but he could do so 'for cause,' which is widely seen as some kind of malfeasance or neglect. Last week, the president's top budget adviser, Russell Vought, wrote Powell a letter that said Trump is 'extremely troubled' by Powell's management of the project, which has risen in cost to about $2.5 billion, up from the Fed's initial estimate of $1.9 billion. Vought's letter also noted that Powell, in testimony before the Senate last month, said that the Fed removed some amenities that critics called ostentatious from its plans. Those plans had been approved by the National Capital Planning Commission in 2021. Monday Mornings The latest local business news and a lookahead to the coming week. Vought said in his letter that if the renovation plans had changed, they were no longer 'in compliance with the approved plan' and may violate the National Capital Planning Act. Powell responded Thursday that since the Fed's plans were approved by the NCPC in September 2021, it has made only 'a small number of design changes to scale back or eliminate certain elements' and added that the changes weren't significant enough to 'warrant… further review.' 'The project is proceeding in accordance with the plan that the NCPC approved,' Powell wrote. The changes were intended 'to simplify construction and reduce the likelihood of further delays and cost increases,' Powell said in his letter. Powell also defended the cost of the renovation: 'Both buildings were in need of significant structural repairs,' including 'the removal of asbestos and lead contamination,' as well as the 'complete replacement of antiquated systems such as electrical, plumbing, heating, ventilation and air conditioning, as well as fire detection and suppression systems,' he wrote.
Axios
14-07-2025
- Business
- Axios
The threat to fire Powell is getting real
President Trump's war on the Federal Reserve is taking a more concrete, legally actionable form — putting the central bank's independence in the crosshairs. Why it matters: For months, Trump's exasperation with Fed chair Jerome Powell over not cutting interest rates has taken the form of increasingly angry comments and social media posts. That pressure has entered a new phase that, if successful, could shock the global financial system. It would also set a new precedent for a president's ability to bend the leader of the world's most important central bank to his will. The big picture: Trump's appointees are trying to lay out legal predicates to fire Powell for cause — specifically, that the Fed's $2.5 billion headquarters renovation project has included changes not approved by a federal planning authority, and/or that Powell lied to Congress about the project. That was the subtext of Office of Management and Budget director Russ Vought's letter to Powell last week. Powell denied to Congress last month that the project contains several luxury features. Vought's letter suggests that the Fed had changed plans that were blessed by the National Capital Planning Commission in 2021, thereby violating the National Capital Planning Act. Also last week, the president installed allies, including the White House staff secretary, to that very commission — normally the province of architects and historical preservationists. State of play: The new NCPC members have been quick to toe the White House line on the Fed's project. The new NCPC chair, Will Scharf — also a former personal lawyer to the president — said at an NCPC meeting last week that the Fed project includes "serious deviations" from plans the NCPC had approved. It looks like a "Taj Mahal near the National Mall," fellow Trump-appointed commissioner Michael Blair said, per reporting from Axios D.C.'s Cuneyt Dil. The other side: The Fed, as is its style, is responding in a restrained and legally precise way. It published an FAQ over the weekend to explain why its leaders believed the project was necessary and how it got so expensive — and looking to correct the record on some exaggerated reports of luxury features. The FAQ articulates the Fed's position that the Board of Governors alone controls its real estate decisions under the Federal Reserve Act, and that its cooperation with the NCPC is voluntary. Also Monday morning, as Axios first reported, Powell asked Fed inspector general Michael Horowitz to review the cost overruns and any other matters involving the building he deems appropriate. Yes, but: That's typical of the Fed's quiet, circling-the-wagons approach when it is in the thick of political disputes. It also may amount to bringing an FAQ to a gunfight, given the Trump administration's willingness to ignore norms and play legal hardball. Reality check: The building project has been underway — and cost overruns public knowledge — for years. There is little doubt that the administration's focus on the renovation is driven by the president's fury at Powell for not cutting interest rates. The reason the Federal Reserve Act gives the Board of Governors such sweeping authority over its real estate to begin with is precisely to ensure its independence from the political tides. The bottom line: We don't know if the president will attempt to use the legal strategy his aides are charting out to fire Powell, and if he does, we don't know if he will succeed.
