“The project is large in scope because it involves the renovation of two historic buildings on the National Mall and that were first constructed in the 1930s,” Powell wrote in a Thursday letter to Office of Management and Budget (OMB) Director Russell Vought.
“While periodic work has been done to keep these buildings occupiable, neither building has seen a comprehensive renovation since they were first constructed,” he wrote, while saying both buildings needed major structural repairs “and other updates to make the buildings safe, healthy, and effective places to work, including the removal of asbestos and lead contamination.”
Vought, earlier this month, questioned the Fed chair’s leadership while claiming the projects in question were mismanaged, resulting in a tab “roughly $700 million over its initial cost.”
His comments came as Trump administration officials have hammered Powell in recent weeks over his refusal to lower interest rates amid tariff uncertainty.
“While continuing to run a deficit since FY23 (the first time in the Fed’s history), the Fed is way over budget on the renovation of its headquarters,” Vought wrote in a July 10 post on social platform X.
“Now up to $2.5 billion, roughly $700 million over its initial cost,” the OMB director added.
He also noted that the perceived discrepancies require “additional oversight” by his office and the National Capital Planning Commission (NCPC).
Powell countered the argument, saying the central bank already received feedback and approval from the NCPC on the project proposals submitted in 2020 and 2021.
The Hill's Ashleigh Fields has more here.
