Federal Reserve says building renovation complies with law, defends costs
Share this @internewscast.com

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell on Thursday affirmed that the agency’s renovation of two of its buildings adheres to plans approved by a local commission. This was in response to a White House suggestion that they might have broken the law by straying from those approved plans.

This letter represents the latest development in a growing conflict between the Federal Reserve, an independent body tasked with controlling inflation and striving for maximum employment, and the Trump administration. President Donald Trump has criticized Powell and the Fed for months for not reducing its key interest rate, arguing that doing so would enhance borrowing and stimulate the economy.

Powell has expressed his intent to wait and observe how the economy reacts to Trump’s extensive tariffs, which have the potential to increase inflation and decelerate growth, before taking any action.

Trump has even threatened to fire Powell, though he has since backed away and said Wednesday it was “highly unlikely” that he would take the unprecedented step of doing so. Firing the Fed chair could cause chaos in the financial markets. Several executives of Wall Street banks have said this week that the Fed’s independence from day-to-day politics is crucial.

Still, the Trump administration has seized on ballooning costs for the Fed’s renovation of two century-old buildings to argue that Powell has mismanaged the project. The president can’t fire the Fed chair because of a policy disagreement, but he could do so “for cause,” which is widely seen as some kind of malfeasance or neglect.

Last week, the president’s top budget adviser, Russell Vought, wrote Powell a letter that said Trump is “extremely troubled” by Powell’s management of the project, which has risen in cost to about $2.5 billion, up from the Fed’s initial estimate of $1.9 billion.

Vought’s letter also noted that Powell, in testimony before the Senate last month, said that the Fed removed some amenities that critics called ostentatious from its plans. Those plans had been approved by the National Capital Planning Commission in 2021.

Vought said in his letter that if the renovation plans had changed, they were no longer “in compliance with the approved plan” and may violate the National Capital Planning Act.

Powell responded Thursday that since the Fed’s plans were approved by the NCPC in September 2021, it has made only “a small number of design changes to scale back or eliminate certain elements” and added that the changes weren’t significant enough to “warrant… further review.”

“The project is proceeding in accordance with the plan that the NCPC approved,” Powell wrote.

The changes were intended “to simplify construction and reduce the likelihood of further delays and cost increases,” Powell said in his letter.

Powell also defended the cost of the renovation: “Both buildings were in need of significant structural repairs,” including “the removal of asbestos and lead contamination,” as well as the “complete replacement of antiquated systems such as electrical, plumbing, heating, ventilation and air conditioning, as well as fire detection and suppression systems,” he wrote.

Share this @internewscast.com
You May Also Like
'I am not done': Kamala Harris hints at another White House bid

Kamala Harris Teases 2024 White House Run: ‘I Am Not Done’ Signals Potential Presidential Campaign

In a recent interview with the BBC, former Vice President Kamala Harris…
Ontario premier says he'll pull ad that upset Trump so trade talks between Canada and US can resume

Ontario Premier Withdraws Controversial Ad to Reopen Canada-US Trade Dialogues

TORONTO (AP) — The Premier of Ontario, Canada’s most populous province, announced…
Danny Masterson’s ex-wife files to change their daughter’s last name

Danny Masterson’s Former Spouse Seeks Last Name Change for Their Daughter

Bijou Phillips, the ex-wife of Danny Masterson, is reportedly seeking a court’s…
Officials investigating after deadly crane collapse in commercial area north of Boston

Tragic Crane Collapse Under Investigation in Boston’s Northern Suburbs

Tragedy struck just north of Boston on Friday, as a crane collapse…
German chancellor defends remarks on migrants suggesting citizens 'afraid to move around in public spaces'

German Chancellor Addresses Public Concerns Over Migrant Impact on Safety

German Chancellor Friedrich Merz has reiterated his stance on migration, asserting that…
Family matriarch dies day after rescue from remote island that saw family swim ashore to escape boat fire

Tragic Turn: Family Matriarch Passes Away After Dramatic Rescue from Remote Island Following Boat Fire

A day after being rescued by the U.S. Coast Guard, a woman…
Company recalls 2 million pounds of barbecue pork jerky that may contain metal wire

Urgent Recall: 2 Million Pounds of BBQ Pork Jerky Pulled from Shelves Over Metal Wire Contamination Concerns

A South Dakota-based company has issued a recall for over 2.2 million…
Trump speaks at tele-rally to boost GOP's chances in governor's race in New Jersey

Trump Rallies Virtually: Energizing GOP Voters for New Jersey Governor’s Race Victory

In a spirited appeal to his supporters in New Jersey, former President…
Fox News True Crime Newsletter: Alex Murdaugh's empire, BTK's family fallout, Bryan Kohberger's money woes

Unraveling Secrets: Alex Murdaugh’s Empire Crumbles, BTK Family Faces Fallout, and Bryan Kohberger’s Financial Struggles

‘HE KNEW HOW TO SWIM:’ The mystery surrounding a tragic death in…
The Louvre detective? Mystery dapper 'detective' in AP photo after the Louvre heist creates social media buzz

Mystery Man in Dapper Attire Sparks Online Frenzy After Louvre Heist

PARIS — In the aftermath of the audacious theft of the crown…
Dramatic video shows NYPD officers rescuing a missing dog named Moose from beneath a Manhattan subway train

Watch: NYPD Heroes Save Missing Dog ‘Moose’ from Manhattan Subway Tracks

A dramatic rescue unfolded in Manhattan as officers from the New York…
Universities defiant on Trump's academic excellence compact as feedback deadline passes

Universities Stand Firm Against Trump’s Academic Excellence Compact as Feedback Deadline Expires

In a notable response to the Trump administration’s proposed Compact for Academic…