The Trump administration will review the $2.5 billion renovation project at the Fed headquarters in Washington this week.
This move comes amid rising tensions between the White House and Fed Chairman Jerome Powell over the project and monetary policies.
MAIN CONTENT
Review of the $2.5 billion renovation project of the Fed led by the Trump administration.
President Trump criticized Chairman Powell personally and raised questions regarding the project.
Powell explained the need to upgrade facilities and protect the Fed's credibility against political pressure.
Is the review of the Fed renovation project related to allegations of fraud or political pressure?
President Trump's views have opposed the Fed's interest rate policies, and questioning the new renovation project is a hotbed of tension. The White House delegation is reportedly seeking to verify whether the project design has been altered from the original proposal, according to Deputy White House Chief of Staff James Blair.
The call for the review of the $2.5 billion project is not merely financial oversight but also indicates increasing political pressure on Chairman Powell and the Fed. Senate Banking Committee Chairman Tim Scott is also discussing participation in this visit.
How has President Trump intensified his criticism of Chairman Powell?
Trump called Chairman Powell the "worst Fed chairman in history" on the Truth Social platform in mid-2025. He targeted the renovation project as a reason to condemn poor management, even suggesting there was fraud without providing specific evidence.
"Mr. Powell not only failed to cut interest rates as desired but also severely damaged the Fed's credibility with the excessive spending project."
James Blair, Deputy White House Chief of Staff, July 17, 2025
How does Chairman Powell defend the $2.5 billion renovation project?
In a letter to the Office of Management and Budget, Powell asserts that the Fed's buildings, constructed from the 1930s, require comprehensive renovations. The work includes asbestos removal, repairing structural damages, and upgrading plumbing systems, fire alarm equipment, and other infrastructure.
Powell emphasized the commitment to using public funds responsibly while ensuring a safe and effective working environment for Fed employees.
"This project reflects the determination to maintain the safety and sustainable operation of the Federal Reserve."
Jerome Powell, Fed Chairman, letter to OMB, July 2025
Is this transparent oversight or a political power struggle?
The White House delegation's visit is not just a financial oversight but also expands questions about independence and political pressure on the Fed. This could have lasting effects on U.S. monetary policy.
In the context of a volatile global economy, Chairman Powell continues to defend the project and his leadership role; however, political conflict threatens to escalate and pose challenges for the Fed in the future.
Frequently Asked Questions
How much is the Fed headquarters renovation project and why is it necessary?
The project has a total cost of $2.5 billion aimed at upgrading old facilities from the 1930s, including asbestos removal and modernizing essential infrastructure to ensure the safety and operational efficiency of the Fed.
What does the Trump administration suspect about this project?
The White House suspects that the project has changed design or shows signs of mismanagement, while questioning spending transparency but has yet to provide specific evidence.
How did Powell respond to the criticisms?
The Fed Chairman emphasizes that this is a necessary project, committing to use the budget responsibly to maintain a safe and modern-standard headquarters.
What impact could the White House visit have on the Fed?
The visit highlights increasing political pressure on the Fed, which could undermine its independence and affect U.S. monetary policy in the long term.
Who will join Trump’s delegation to inspect the project?
Tim Scott, Chairman of the Senate Banking Committee, is expected to join the delegation to enhance oversight of the project and the Fed's role.
Source: https://tintucbitcoin.com/powell-bi-cao-gian-lan-trump-kiem-tra/
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