Overview

• Powell asked the Fed Board’s inspector general to reexamine contracts, schedules and expenditures after costs rose to $2.5 billion.
• The Fed released a detailed FAQ explaining that unexpected asbestos, toxic soil and a higher water table drove the budget increases.
• Originally estimated at $1.9 billion in 2017, the project faced pandemic delays and additional safety upgrades that pushed costs upward.
• Sen. Tim Scott and Sen. Elizabeth Warren have demanded more project details as Trump allies call for Powell’s accountability and explore removal options.
• The Federal Reserve reiterated that the renovation is self-funded and not subject to taxpayer appropriations or OMB oversight.