Trump Allies Accuse Powell of Billion-Dollar Waste, Demand Accountability

Fed HQ Renovation Sparks Fierce Criticism Amidst Economic Jitters

Criticism is mounting against U.S. central bank chief Jerome Powell, with allies of former President Donald Trump alleging significant financial mismanagement at the Federal Reserve’s headquarters.

Escalating Renovation Costs

The controversy centers on the escalating costs of renovating the central bank’s building. Reports indicate a surge from $1.9 billion in 2023 to $2.5 billion this year, a figure that has drawn sharp rebukes from Trump‘s inner circle, as detailed by Bloomberg.

Donald Trump has previously voiced strong disapproval of Powell‘s economic policies, labeling him “dum” and “treg,” and advocating for significantly lower interest rates.

Call for “Regime Change” at the Fed

Trump‘s financial advisor voiced concerns to ABC News, suggesting Powell‘s tenure could hinge on his responses regarding the renovation project. “It was never in the mind of those who voted for the creation of the Fed, that the central bank could print money and throw them around without purpose and meaning,” the advisor stated.

Adding to the pressure, former Fed governor Kevin Warsh, frequently cited as a potential successor to Powell, called for broader changes within the institution. According to Fox News, Warsh stated, “I think what we need is a regime change in the Federal Reserve, and it’s not just about the Governor, but about a number of people. It’s about cleaning up properly, because the way they have driven does not work.”

Powell Defends Fed Spending

Jerome Powell‘s term as Federal Reserve Chair concludes in May 2026, though his board membership extends to 2028. Recent criticisms may aim to undermine his position, requiring proof of incompetence or neglect.

Russ Vought, director of the White House’s budget office, formally challenged Powell in a letter, accusing him of misrepresenting the Fed and demanding clarity on the “flashy renovation.”

During a recent Senate hearing, Powell vehemently denied these accusations of extravagance. He countered, “There is no VIP-eating room, there is no new marble, there are no special lifts, no new water fountains, no beehives and no roof terraces.”

The Federal Reserve’s balance sheet, a key indicator of its operations, stands at approximately $7.3 trillion as of June 2024, highlighting the scale of the institution’s financial activities and the scrutiny it faces. (Federal Reserve, 2024)

These developments come at a critical juncture for the U.S. economy, with ongoing debates about inflation, interest rates, and government spending.