Fed Renovation Saga Turns into Political Showdown

When the Federal Reserve decided to refurbish two historic buildings on the National Mall, the project’s high cost and fancy features sparked a firestorm. A New York Post piece highlighted the nearly $2. 5 billion price tag and luxury touches, pushing President Trump to criticize the Fed for not cutting rates. Soon after, Senate Banking Committee chair Tim Scott and other Republicans demanded that Fed Chair Jerome Powell explain the extra spending. The committee sent a letter on June 24, 2025, asking Powell to justify costs for rooftop gardens, water features, new elevators and even Italian beehives. Powell answered the next day by saying the luxury claims were wrong. He noted that the budget had risen by about $1. 1 billion since 2020, mainly because of higher material and labor costs after the pandemic and unexpected expenses like asbestos removal. Despite Powell’s explanation, other officials pressed further. Bill Pulte posted on X calling Powell “deceptive, ” while OMB director Russell Vought demanded a full review of the project’s approval process. Powell sent detailed letters to Scott, Senator Elizabeth Warren and posted FAQs on the Fed website, asking its Inspector General to re‑examine the work.The controversy grew when Trump, Pulte, Vought and Senators Scott and Thom Tillis toured the construction site on July 24. Trump used the visit to push for rate cuts again, while Powell defended the renovations and warned that any pressure would undermine Fed independence. In November, U. S. Attorney Jeanine Pirro opened a criminal probe into Powell, alleging he misled the Senate in July. By January, Powell publicly revealed the investigation and described it as intimidation aimed at forcing monetary policy changes. The DOJ’s subpoenas were blocked by a judge on March 13, 2026, agreeing that the case was an improper attempt to coerce the Fed. Pirro vowed to appeal but later, on April 24, announced she would close the investigation and refer it to the Fed’s Inspector General, saying a new criminal case could start if needed. Throughout the saga, senators like Tillis threatened to block any new Fed nominee until the probe ended, while Trump publicly supported the investigation, insisting the high costs needed explanation. The case illustrates how a federal agency’s internal project can become a battleground for political power.