Trump's housing chief rips Powell for blowing millions on Fed facelift during housing crisis he perpetuates

Fox News

5 days ago

Housing and Urban Development Secretary Scott Turner blasted Federal Reserve Chair Jerome Powell for spending billons of dollars renovating the Fed's headquarters amid a housing crisis he said Powell is helping perpetuate.
The Federal Reserve's headquarters has been undergoing a major renovation that has been plagued by cost overruns and now has a price tag of $2.5 billion. Meanwhile, the Trump administration faults Powell for not cutting interest rates, even with inflation seemingly under control.
"It's rich that an unelected bureaucrat like Powell is wasting billions of taxpayer dollars on building renovations while Americans struggle to buy homes due to high mortgage rates, which are directly impacted by his refusal to lower interest rates," Turner told Fox News Digital.
HUD became the first Cabinet agency to announce a move out of Washington, D.C., with Turner reporting in June that the department was moving to the already existing National Science Foundation (NSF) in nearby Alexandria, Virginia. Turner said the move will free up millions in taxpayer funds that were spent on the massive, longtime HUD headquarters at D.C.'s L'Enfant Plaza that also included "health hazards, leaks, and structural and maintenance failures" for staffers.
"HUD's move isn't about me – our workforce deserves to be in a building that is safe and that fits our workforce. NSF was never able to fully fill their building to occupancy and will move into a building that best fits their workforce. Instead of spending nearly a half-billion dollars on renovating 10 floors of basement with perpetual leaks, HUD and GSA are saving the taxpayers money – something that Chairman Powell, sitting in his ivory tower, thinks he is above – and putting Americans first," Turner continued.
Speculation has swirled that President Donald Trump could try to oust the Fed chief ahead of his term officially ending in May 2026 due to his reluctance to lower the federal funds target rate, which would lower borrowing costs for Americans. The Fed in June held its benchmark interest rate range between 4.25%-4.5%, which Trump has argued stifles American economic growth.
The Fed, which sets monetary policies and oversees banks, has said decisions on interest rates are rooted in its data-dependent approach to managing inflation and economic growth. It acts independently, meaning it does not require approval from the president or Congress when enacting policies.
Trump has amplified his criticisms of Powell in recent weeks, arguing that he already should have lowered interest rates, while calling him a "numbskull" along with the nickname "Mr. Too Late." At the recent NATO summit in Canada, Trump said during a press conference that Powell is "terrible" and is a "very average mentally person" who has a "low IQ for what he does."
Trump said recent, over-budget renovations at the Fed headquarters, the Marriner S. Eccles Building, "sort of is" a "fireable offense."
"I think he's terrible. I think he's a total stiff. But the one thing I didn't see in him is a guy that needed a palace to live in," Trump told reporters last week.
"You talk to the guy. It's like talking to – nothing. It's like talking to a chair. No personality, no high intelligence, no nothing. But the one thing I would have never guessed is that he would be spending $2.5 billion to build a little extension."
Democrat lawmakers have slammed Trump's attacks on Powell over the Fed building's updates, including Massachusetts Sen. Elizabeth Warren taking a swipe at Turner for moving HUD to Virginia.
"If Trump were serious about lowering interest rates, he would rein in his chaotic tariffs," Warren said earlier this month during a speech at the Exchequer Club in D.C. "Instead, he is threatening to fire the chairman of the Federal Reserve. When his initial attempts to bully Powell failed, Trump and Republicans in Congress suddenly decided to look into how much the Fed is spending on building renovations."
HUD is expected to save $22 million per year on operating and maintenance costs by moving out of the Robert C. Weaver Building, while the government is expected to pull in a hefty sum when the building is officially sold due to its prime location in the nation's capital.
The agency's new home at NSF is anticipated to cost the government $35 per square foot, compared to the $86 per square foot at the Weaver building, including operations and maintenance, Fox Digital learned.
The federal government had spent $90 million on repairs for the massive Weaver building in the last 15 years, Fox Digital learned, but the building has "deteriorated well beyond the point of cost-effective repair, creating significant financial obligations for the federal government if occupancy is maintained," HUD reported in June.
The Federal Reserve on Sunday morning declined comment when asked about Turner's remarks to Fox Digital.
The Fed's website includes a frequently asked questions page regarding the building's renovations, including underscoring that the Fed's board "takes the responsibility to be a good steward of public resources," and is subject to a handful of safeguards to ensure transparency.
"The Federal Reserve Chair testifies to each house of Congress twice per year on monetary policy. During two sequential days of hearings, members of the House and Senate have the opportunity to question the Fed Chair on any topic, and then submit questions in writing after the hearings. As part of these hearings, the Federal Reserve publishes a semiannual Monetary Policy Report, detailing recent economic and monetary policy developments," the page states.
Trump, who appointed Powell during his first presidential term, has meanwhile continued slamming Powell on social media for the current interest rates he said are "choking" the housing market for Americans.
"Too Late," and the Fed, are choking out the housing market with their high rate, making it difficult for people, especially the young, to buy a house," Trump wrote on Truth Social Friday. "He is truly one of my worst appointments. Sleepy Joe saw how bad he was and reappointed him anyway."
"The USA is Rockin', there is VERY LOW INFLATION, and we deserve to be at 1%, saving One Trillion Dollars a year on Interest Costs. I can't tell you how dumb Too Late is – So bad for our Country!"