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White House Investigates Fed HQ Overruns to Challenge Powell’s Leadership

The Fed has defended its self-funded $2.5 billion renovation with a public FAQ following the administration’s investigation into cost overruns.

Construction on the Marriner S. Eccles Federal Reserve building in Washington, DC, on June 25.
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U.S. Federal Reserve Chair Jerome Powell testifies before a Senate Banking, Housing and Urban Affairs Committee hearing on "The Semiannual Monetary Policy Report to the Congress," on Capitol Hill in Washington, D.C., U.S., June 25, 2025. REUTERS/Kevin Mohatt/File Photo
White House national economic council director Kevin Hassett in the James Brady Press Briefing Room at the White House, on Feb. 20, 2025.

Overview

  • OMB Director Russell Vought opened an official probe into the Fed’s $2.5 billion Washington headquarters renovation to examine potential mismanagement and build grounds for removing Chair Jerome Powell.
  • The Federal Reserve posted a detailed FAQ rebutting claims of luxury spending and explaining that design revisions, asbestos removal and inflation drove costs higher.
  • Jerome Powell affirmed he will serve through May 2026 and dismissed rumors of early resignation despite pressure from administration allies like Bill Pulte.
  • Legal experts and Supreme Court guidance emphasize that statutory “for cause” removal of a Fed chair requires evidence of misconduct or dereliction, not budget overruns alone.
  • The investigation and the Fed’s response highlight President Trump’s escalating efforts to influence interest-rate policy and test the central bank’s independence.