Federal Reserve Chair Jerome Powell has requested an inspector general review of the costs related to ongoing $2.5 billion renovations, which are $700 million over budget. These changes have drawn criticism from Trump administration officials who deem them "ostentatious." President Trump is troubled by the renovations, suggesting they may breach local regulations. The administration's escalation of oversight indicates efforts to influence the independent Fed, which traditionally operates free from political pressures. Trump insists Powell reduce short-term interest rates to alleviate borrowing costs, and there are indications officials may seek Powell's resignation before his term ends next May.
The Fed has been renovating two of its office buildings in Washington for several years at a current cost estimate of about $2.5 billion, $700 million more than originally expected.
Russ Vought, the president's top budget advisor, said that President Donald Trump is "extremely troubled" about the "ostentatious overhaul" and suggested that it may be violating local building rules.
The letter represented a sharp escalation in the Trump administration's efforts to gain greater control over the Fed, an independent agency charged with seeking stable prices and maximum employment.
Trump has repeatedly demanded that Powell cut the short-term interest rate that the central bank controls, in part because the president believes it will lower the government's borrowing costs.
Collection
[
|
...
]