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Boston Globe
18 hours ago
- Business
- Boston Globe
Fed takes fresh steps to defend renovations as White House intensifies attacks
The White House has fixated on the project's cost overruns, as well as what it described as luxury features included in the initial plan submitted to the National Capital Planning Commission. Those had included new water fountains and a roof terrace for staff, neither of which are part of the latest proposal. The Fed has also clarified that its headquarters will not have a VIP dining room or private elevators, both of which had previously garnered criticism from the White House. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Top administration officials, including James Blair, the White House's deputy chief of staff, have demanded a tour of the construction site. On Friday, Blair, newly appointed to the National Capital Planning Commission, rejected an offer by the Fed to visit at 7 p.m. that evening and said he did not want to see the site after-hours. 'We want to see what's going on,' he told reporters. 'We want to see what the construction is like.' Advertisement Blair has referred to the Fed's headquarters as the 'Taj Mahal on the National Mall.' He also has gone after Powell directly, posting a meme on social media of the central bank chair dressed as Marie Antoinette that read, 'Let them eat basis points.' Advertisement The renovations, which have been happening since 2021 and are around $700 million over budget, have become the administration's latest attack line against Powell, whose hesitancy to lower interest rates has made him a frequent target of President Donald Trump. Trump has called for borrowing costs, which are in range of 4.25% to 4.5%, to be roughly 3 percentage points lower. He has argued, incorrectly, that there is no inflation, and has said that by maintaining interest rates, the Fed is costing the country trillions of dollars in expenses associated with the government covering interest payments on its debts. The president, who has repeatedly insulted Powell, has advanced his pressure campaign. Last week, Trump more openly toyed with trying to fire the Powell despite protections granted by the Supreme Court that limit Trump's ability to do so, and he also brandished a draft letter firing Powell to House Republicans in the Oval Office. Powell can be removed from his post only if there is 'cause,' an ambiguous term that legal experts have often interpreted to mean gross misconduct or a violation of the law. That has caused the administration to try to build a case against Powell, alleging that he mismanaged the renovations. Trump has even gone so far as to question if Powell had committed 'fraud.' 'I mean it's possible there's fraud involved with the $2.5 billion renovation,' Trump said last week. Advertisement Despite the pressure campaign, the Fed is widely expected to again hold interest rates steady when its officials gather for their July meeting next week. This article originally appeared in
New York Times
20 hours ago
- Business
- New York Times
Fed Takes Fresh Steps to Defend Renovations as White House Intensifies Attacks
The Federal Reserve on Monday took additional steps to defend the renovations underway at its headquarters in Washington, as top Trump administration officials show little sign of backing down from allegations that the roughly $2.5 billion project has been mismanaged. The central bank on Monday published a virtual tour of the active construction site, including footage of asbestos caulking being removed and the blast resistant windows being installed. The Fed, which has said that it has scaled back its initial plans, highlighted changes made to a 2021 proposal submitted to a little-known planning board. The Fed's renovation has become central to the administration's attempts to undermine and potentially oust Jerome H. Powell, the chair of the central bank. The White House has fixated on the project's cost overruns, as well as what it described as luxury features included in the initial plan submitted to the National Capital Planning Commission. Those had included new water fountains and a roof terrace for staff, neither of which are part of the latest proposal. The Fed has also clarified that its headquarters will not have a V.I.P. dining room or private elevators, both of which had previously garnered criticism from the White House. Top administration officials, including James Blair, the White House's deputy chief of staff, have demanded a tour of the construction site. On Friday, Mr. Blair, newly appointed to the National Capital Planning Commission, rejected an offer by the Fed to visit at 7 p.m. that evening and said he did not want to see the site after-hours. 'We want to see what's going on,' he told reporters. 'We want to see what the construction is like.' Mr. Blair has referred to the Fed's headquarters as the 'Taj Mahal on the National Mall.' He also has gone after Mr. Powell directly, posting a meme on social media of the central bank chair dressed as Marie Antoinette that read, 'Let them eat basis points.' Want all of The Times? Subscribe.
CNN
14-07-2025
- Business
- CNN
Under fire for cost overruns, Powell asks watchdog to review the Fed's $2.5 billion renovation plan
Federal Reserve Chair Jerome Powell has asked the central bank's inspector general to formally review an ongoing $2.5 billion renovation of the institution's headquarters in Washington, DC, according to a source familiar with the matter. Powell made the request 'a few weeks ago,' the source said. At a congressional hearing last month, Powell was grilled by Senate lawmakers over what they depicted as lavish upgrades to the Fed's headquarters. Powell said some of those upgrades, such as Italian beehives, are not part of the renovation. Since then, the Fed head has been under fire by top Trump officials, with some accusing him of lying under oath. 'The Federal Reserve's Inspector General is considering opening an investigation into the massive cost overruns for their $2.5B+ HQ renovation project,' wrote James Blair, a White House deputy chief of staff, on Monday on X. Blair is one of three Trump loyalists appointed last week to the National Capital Planning Commission, the federal government's central planning agency for the region, which has an oversight role in the Fed's renovation project. This is a developing story and will be updated.
CNN
14-07-2025
- Business
- CNN
Under fire for cost overruns, Powell asks watchdog to review the Fed's $2.5 billion renovation plan
Federal Reserve Chair Jerome Powell has asked the central bank's inspector general to formally review an ongoing $2.5 billion renovation of the institution's headquarters in Washington, DC, according to a source familiar with the matter. Powell made the request 'a few weeks ago,' the source said. At a congressional hearing last month, Powell was grilled by Senate lawmakers over what they depicted as lavish upgrades to the Fed's headquarters. Powell said some of those upgrades, such as Italian beehives, are not part of the renovation. Since then, the Fed head has been under fire by top Trump officials, with some accusing him of lying under oath. 'The Federal Reserve's Inspector General is considering opening an investigation into the massive cost overruns for their $2.5B+ HQ renovation project,' wrote James Blair, a White House deputy chief of staff, on Monday on X. Blair is one of three Trump loyalists appointed last week to the National Capital Planning Commission, the federal government's central planning agency for the region, which has an oversight role in the Fed's renovation project. This is a developing story and will be updated.
CNN
14-07-2025
- Business
- CNN
Under fire for cost overruns, Powell asks watchdog to review the Fed's $2.5 billion renovation plan
Federal Reserve Chair Jerome Powell has asked the central bank's inspector general to formally review an ongoing $2.5 billion renovation of the institution's headquarters in Washington, DC, according to a source familiar with the matter. Powell made the request 'a few weeks ago,' the source said. At a congressional hearing last month, Powell was grilled by Senate lawmakers over what they depicted as lavish upgrades to the Fed's headquarters. Powell said some of those upgrades, such as Italian beehives, are not part of the renovation. Since then, the Fed head has been under fire by top Trump officials, with some accusing him of lying under oath. 'The Federal Reserve's Inspector General is considering opening an investigation into the massive cost overruns for their $2.5B+ HQ renovation project,' wrote James Blair, a White House deputy chief of staff, on Monday on X. Blair is one of three Trump loyalists appointed last week to the National Capital Planning Commission, the federal government's central planning agency for the region, which has an oversight role in the Fed's renovation project. This is a developing story and will be updated.
