Fed Chair Jerome Powell has requested a review of the project by the central bank's inspector general as Trump and his allies look for a cause to fire him
Win McNamee/Getty Images
The Federal Reserve is facing mounting scrutiny from the Trump administration over a renovation of its Washington headquarters. And the central bank is taking steps to head off what could be an attempt by President Donald Trump and his allies to establish a cause to fire Fed Chair Jerome Powell.
Powell has requested a review of the project by the central bank's inspector general, according to a person familiar with the situation. Axios first reported the development.
The Federal Reserve also posted a Q&A on its website Friday offering details about the renovation project, which is estimated to be $700 million over budget at $2.5 billion so far. The Fed's headquarters near the National Mall haven't been broadly renovated since its original construction in the 1930s. Despite what some critics have suggested, the new three-building campus will not include perks like a VIP elevator or a VIP dining room.
"The Federal Reserve takes seriously the responsibility to be a good steward of public resources," the Fed said on the website, which has been kept updated. "The project will reduce costs over time by allowing the Board to consolidate most of its operations."
The Trump administration has lambasted the hefty price tag of the project, the latest attack in its multi-pronged offensive against Powell and the Fed as Trump has pressured the central bank to lower interest rates.
One top Trump economic adviser didn't rule out Trump firing Powell over the Fed renovation project on Sunday.
“That’s a thing that’s being looked into," White House National Economic Council Director Kevin Hassett said on This Week on ABC News. "But certainly if there’s cause, he does."
"I think that whether the president decides to push down that road or not is going to depend a lot on the answers that we get to the questions that Russ Vought sent to the Fed," Hassett added.
Last week, Office and Management Budget Director Russ Vought sent a letter to Powell accusing him of lying to Congress about the project and listed questions on its size and scope, including whether approvals were secured from the National Capital Planning Commission.
"Instead of attempting to right the Fed’s fiscal ship, you have plowed ahead with an ostentatious overhaul of your Washington, D.C., headquarters," Vought said in the letter.
Powell appointed Michael Horowitz last month to head the Fed's Office of the Inspector General after Horowitz served as the Justice Department's chief internal watchdog since 2012. The Fed post doesn't need Senate confirmation or a sign-off from the president under current law.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
