‘Committed to working with you': Jerome Powell asks inspector general to review Fed headquarters renovation project
The instruction from Powell comes amid the Donald Trump administration's intensification of the criticism on how the Fed is being run.
'I have asked the Board's IG to take a fresh look at the project,' Powell said in a letter to Senate Banking Committee Chair Tim Scott and the panel's top Democrat, Elizabeth Warren.
In the letter, reviewed by Reuters and first reported by Politico, Powell addressed the concerns flagged by the Trump administration and Republican lawmakers over the renovation of the Fed headquarters.
As per the letter, some features including VIP elevators or dining rooms — which had drawn uproar from the government — had never been in the project's scope. Other features, such as the new water, were on the other hand, removed.
Changes to the original design were not substantial and "none of them added cost to the project," Powell wrote.
According to a source quoted by Reuters, Powell's request to the IG was made over the weekend.
Powell's letter comes nearly a week after the director of the Office of Management and Budget, Russell Vought, wrote in a letter that Donald Trump was "extremely troubled" by cost overruns in the $2.5 billion project.
"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 letter, adding that the letter was consistent with improving transparency.
The Senate Banking committee is in charge of overseeing the Fed's actions.
In material posted to its website on Friday and summarised in Powell's letter to the senators, the Fed said the cost overruns were driven by factors including higher-than-estimated materials and labour costs, as well as toxic contamination in the soil that came to light during what is a complete rehabilitation of the nearly 100-year-old Marriner S. Eccles building and a neighboring property on Constitution Avenue in the nation's capital.
'We respect the critical importance of the constitutionally-derived congressional oversight of our activities, and we are committed to working collaboratively and cooperatively with you,' Powell wrote to the senators.
The Eccles building, the Fed's main headquarters, was built during the Depression, during President Franklin Delano Roosevelt's administration.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
25 minutes ago
- Time of India
Hypocrisy? Nancy Mace calls for death penalty for child rapists; X Community Notes reveal she said it moments after voting against Epstein files release
Just minutes after voting against a Democratic-led effort to release the long-awaited Jeffrey Epstein files, Congresswoman Nancy Mace took to social media with a bold statement: 'All child r*pists should get the death penalty,' according to Axios, as noted by X community notes on her post. Her post has since drawn intense backlash, with critics accusing her and fellow Republicans of protecting abusers. Mace's post came shortly after the House voted 211–210 to block a procedural move that would have triggered debate on forcing the justice department to release the Epstein documents within 30 days, according to the Clerk of the United States House of Representatives All 211 votes against the motion came from Republicans. Just one Republican crossing over would have tipped the outcome. Although Mace is not on the House Rules Committee, she was among the 211 GOP members who voted against the move to bring the matter to the floor, leaving many on social media questioning her sincerity. Procedural or political? Democrats had sought to advance the amendment, first introduced by Representative Ro Khanna, via a procedural manoeuvre. The attempt followed the Rules Committee's decision to strike down the amendment the previous evening. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cách giao dịch ETH/USD mà không cần nắm giữ Ether IC Markets Tìm hiểu thêm Undo Representative Mary Gay Scanlon introduced the motion on Tuesday to force a vote, but it failed narrowly. The measure would have forced the release of files related to the Epstein case, which is still a hot topic for both Republicans and Democrats, especially among supporters of US President Donald Trump. Many in the MAGA movement have long demanded more transparency about Epstein's network and connections. Even outspoken Republican figures such as Marjorie Taylor Greene, who have previously voiced support for releasing the Epstein files, voted against the motion. Mace defends her vote In a follow-up post on X, Mace attempted to clarify her position, saying the vote in question was being misrepresented. 'There was no vote on the Epstein files today... despite Democrats best efforts to trick the FAKE NEWS and YOU into thinking otherwise,' she wrote. She argued that the vote was simply a routine procedural action known as the 'Previous Question' (PQ), not about Epstein or any specific issue. 'If it fails, the minority takes over. In today's GOP-led Congress, Democrats have no shot at defeating the PQ. So they played games – knowing it would fail – and then falsely claimed Republicans voted against releasing the Epstein files,' Mace posted. She continued, 'Don't fall for it. A TOTAL and COMPLETE LIE. This was a routine, party-line procedural vote. Nothing more. In fact, a PQ hasn't failed since the 1980s.' However, another X Community Note said, 'Misleading. GOP twice blocked efforts to get Epstein files released,' citing Politico.
&w=3840&q=100)
First Post
27 minutes ago
- First Post
Why Trump's threat of 'secondary tariffs' on Russia is bad news for India
India currently imports 1.6 to 1.7 million barrels of discounted Russian oil daily — roughly 35 per cent of its total crude demand. Donald Trump's threat of 100 per cent secondary tariffs on Russian trade partners within 50 days could disrupt these flows and imperil a bilateral trade agreement with the US, just as final negotiations near their August 1 deadline read more US President Donald Trump boards Air Force One at Morristown Airport as he departs for Washington, in Morristown, New Jersey, US, July 6, 2025. File Image/Reuters India now faces a potential economic challenge. US President Donald Trump's latest policy proposition — a sweeping set of 'secondary tariffs' aimed at countries maintaining commercial ties with Russia — could directly disrupt India's critical oil imports and complicate its trade with the United States. The threat of 100 per cent tariffs on Russian trade partners has raised alarm in New Delhi and across many capitals in Asia and South America. Trump has declared that unless the Kremlin agrees to halt its military offensive in Ukraine within 50 days, nations purchasing Russian oil, gas, arms or agricultural products will face severe trade penalties. STORY CONTINUES BELOW THIS AD The move is seen as an attempt to suffocate the Kremlin's economic lifelines by penalising its remaining trading allies, including India, China, Brazil, Turkey, Vietnam and the United Arab Emirates. Why India is a target Speaking from the White House, Trump announced a bold new initiative to apply 100 per cent tariffs on nations that continue economic engagements with Russia, particularly in the sectors that fund the war effort. 'We're going to be doing very severe tariffs if we don't have a deal in 50 days, tariffs at about 100%,' the US president stated. Rather than directly targeting Russian exports, the plan focuses on cutting off Moscow's access to international markets by penalising the buyers — what Washington refers to as 'secondary tariffs.' These would apply to goods imported into the United States from any country that maintains significant trade with Russia, especially in energy and defence. India's role in this ecosystem is significant. Since Western sanctions began taking effect in 2022, following Russia's full-scale invasion of Ukraine, India and China have become the top two destinations for Russian oil. In 2023, both countries surpassed the European Union in seaborne crude imports from Russia, jointly accounting for nearly 85–90 per cent of the total volume exported by Russian state-backed energy firms. India alone currently imports about 1.6 to 1.7 million barrels per day, which fulfils around 35 per cent of its daily oil needs, according to market experts. STORY CONTINUES BELOW THIS AD India's dependence on Russian oil has grown due to the steep discounts offered by Moscow since the start of the war. These discounts brought prices below the $60 per barrel price cap set by the European Union, making Russian oil financially appealing for Indian refiners. Russia's crude grades — medium sour and light sour — are also better suited to India's refining infrastructure than the lighter, sweeter crude grades produced in the US. Brazil, China, UAE and beyond India is not alone in its vulnerability. The secondary tariff threat is aimed at more than a dozen countries across multiple continents. In West Asia, the United Arab Emirates functions as a financial conduit for Russian energy transactions, even if it is not a primary consumer of Russian oil. Dubai, in particular, has become a financial sanctuary for Russian capital and oligarch wealth. Turkey, a Nato member, remains heavily reliant on Russian fossil fuels, including both crude oil and natural gas. Brazil, a major agricultural economy, is one of the largest buyers of Russian fertilizers — a key input for its production of soybeans, sugar and coffee. STORY CONTINUES BELOW THIS AD Vietnam and Thailand, which have tried to maintain a neutral stance in the Russia-Ukraine conflict, also maintain energy and defence ties with Moscow. The secondary tariff scheme is meant to push these countries toward breaking those economic relationships. But of all the countries affected, India stands out — not only for its large-volume oil purchases but also because of its growing strategic partnership with the United States. Support for Trump's pressure campaign Trump's strategy has gained endorsement from key figures in Nato and the US Congress. Mark Rutte, the Secretary General of Nato, expressed strong support for the secondary tariff plan during his recent meetings with US lawmakers and with Trump himself. 'My encouragement to these three countries, particularly is, if you live now in Beijing, or in Delhi, or you are the president of Brazil, you might want to take a look into this, because this might hit you very hard,' said Rutte. US President Donald Trump meets with NATO Secretary General Mark Rutte, in the Oval Office at the White House in Washington, DC, US, July 14, 2025. File Image/Reuters 'So please make the phone call to Vladimir Putin and tell him that he has to get serious about peace talks, because otherwise this will slam back on Brazil, on India and on China in a massive way,' he added. US Republican Senator Thom Tillis also endorsed Trump's move but raised concerns that the 50-day deadline might allow Putin time to escalate the war further. STORY CONTINUES BELOW THIS AD He stated, 'Putin would try to use the 50 days to win the war, or to be better positioned to negotiate a peace agreement after having murdered and potentially collected more ground as a basis for negotiation.' At the same time, bipartisan legislation is gaining momentum in the Senate. A new bill introduced by Republican Lindsey Graham and Democrat Richard Blumenthal would authorise the US president to impose tariffs as high as 500% on countries purchasing Russian uranium, oil or gas. India-US trade deal As Trump pivots toward a more aggressive sanctions policy, Indian officials are working to avoid the fallout. Earlier this year, India was notably excluded from a list of 14 countries subjected to new US import duties — a list that included close American allies like Japan and South Korea. Washington's decision to spare India at the time was seen as a goodwill gesture, especially as both countries were advancing talks on a bilateral trade agreement. However, Trump has made clear that this reprieve will not last forever. Although the US initially imposed tariffs on April 2, their full enforcement was postponed for 90 days, with an extended grace period until August 1. This deadline, if unmet, may bring India back under tariff scrutiny. Indian Commerce Minister Piyush Goyal recently told the Press Trust of India that negotiations with Washington were progressing at 'a very fast pace.' STORY CONTINUES BELOW THIS AD Both countries have finalised a terms-of-reference framework for the trade deal, following a visit to New Delhi by US Vice President JD Vance. Yet critical roadblocks remain. The US continues to press India to open its markets to genetically modified crops — a proposal that has triggered concern among India's large agricultural base. Other unresolved issues include access for US dairy products, regulatory hurdles on Indian pharmaceutical exports, and tariff barriers affecting automobile components and steel. These issues have taken on greater urgency with Trump's 50-day deadline ticking. Indian trade representatives are working intensively to reach consensus before the cutoff. How Russia reacted to Trump's new ultimatum Despite the mounting pressure, Moscow has not shown signs of yielding. Senior Russian officials dismissed the secondary sanctions threat outright, calling Trump's ultimatum 'unacceptable.' Far from causing panic, Trump's comments were met with optimism in Russian markets. Following his announcement, Russia's stock exchange recorded a 2.7 per cent increase, and the ruble appreciated against the US dollar. Analysts suggest that investors may believe either that a diplomatic resolution is still achievable within the 50-day window or that Russia can withstand the sanctions through alternative trade channels. STORY CONTINUES BELOW THIS AD Also Watch: With inputs from agencies
Time of India
28 minutes ago
- Time of India
Gold prices open higher at Rs 97,389 per 10 grams after 2-day fall. Should you invest at this price?
Taking support from global trade tensions, Gold August futures contracts at MCX opened higher today by Rs 178 or 0.18% at Rs 97,389/10 g after settling negatively in the previous trading session. In the last 2 days, gold prices have fallen by Rs 400. Meanwhile, silver September futures contracts surged by Rs 314 or 0.28% at Rs 1,11,800/kg after witnessing profit booking for the last 2 days. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 이 게임은 대부분의 TV 프로그램보다 더 재미있어요 – 게다가 무료예요. Raid: Shadow Legends 플레이하기 Undo On Tuesday, gold and silver settled on a weaker note in the domestic and international markets. Gold August futures contract settled at Rs 97,211 per 10 grams with a loss of 0.58% and silver September futures contract settled at Rs 1,11,486 per kilogram with a loss of 1.28%. Gold and silver extended their fall in a highly volatile session after hotter U.S. inflation data and strength in the dollar index. The U.S. CPI rose 0.3% in June against 0.1% in May, and CPI on a yearly basis came up at 2.7% against 2.4% in May. Annual core inflation rose to 2.9% in June month up from 2.8% in May. Hotter U.S. inflation data fades chances for early interest rate cuts by the U.S. Fed and intensifies selling in precious metals. Live Events Following the data, US President Donald Trump said that consumer prices were low and the U.S. Fed should bring down interest rates now. U.S. central bank will probably need to leave interest rates where they are for a while longer to ensure inflation stays low in the face of upward pressure from the Trump administration's tariffs, Dallas Fed Bank President Logan said. 'The dollar index hit a 3-week high and crossed 98 levels once again, and also pushed gold and silver prices lower. However, uncertainty in the global financial markets due to higher trade tariffs could support prices at lower levels,' said Manoj Kumar Jain of Prithvifinmart Commodity Research. Today, the US Dollar Index, DXY, was hovering near the 98.57 mark, falling 0.05 or 0.05%. 'We expect gold and silver prices to remain volatile this week amid volatility in the global financial markets and U.S. trade tariff uncertainty, and gold prices could hold their support level of $3,280 per troy ounce and silver prices could also hold $36.40 per troy ounce levels on a weekly closing basis,' he added. How to trade gold? Manoj Kumar Jain suggested the following ranges for gold and silver on MCX: Gold has support at Rs 96,950-96,600 and resistance at Rs 97,440-97,770 Silver has support at Rs 1,10,500-1,09,700 and resistance at Rs 1,12,200-1,13,000 Jain suggests traders avoid long positions in gold and silver in today's session ahead of the U.S. PPI and core PPI data, but investors can accumulate in the dips. Gold rates in physical markets Gold Price today in Delhi Standard gold (22 carat) prices in Delhi stand at Rs 58,376/8 grams while pure gold (24 carat) prices stand at Rs 62,256/8 grams. Gold Price today in Mumbai Standard gold (22 carat) prices in Mumbai stand at Rs 57,360/8 grams while pure gold (24 carat) prices stand at Rs 61,112/8 grams. Also read: Mutual funds dump Rs 1,700 crore worth of 9 defence stocks. Too expensive to buy or smart exit? Gold Price today in Chennai Standard gold (22 carat) prices in Chennai stand at Rs 56,744/8 grams while pure gold (24 carat) prices stand at Rs 60,432/8 grams. Gold Price today in Hyderabad Standard gold (22 carat) prices in Hyderabad stand at Rs 57,072/8 grams while pure gold (24 carat) prices stand at Rs 60,792/8 grams. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
