Fed Chair Jerome Powell on Monday asked the central bank’s inspector general to review the $2.5 billion headquarters renovation, pushing back against President Trump, who has cited cost overruns in efforts to oust him over interest rate disputes.
The review will examine cost overruns and other relevant issues, according to multiple sources. Fed Inspector General Michael Horowitz, appointed by Powell in June, previously gained praise from Trump supporters for exposing flaws in the FBI’s 2016 Trump-Russia investigation.
Powell’s request is part of a broader effort to counter White House criticism of the Fed’s renovation project. President Trump has openly discussed replacing Powell before his term ends in May 2026. Over the weekend, the Fed posted an FAQ page directly pushing back on claims made by OMB Director Russell Vought.
“The Federal Reserve takes seriously the responsibility to be a good steward of public resources,” the page says. “The project will reduce costs over time by allowing the Board to consolidate most of its operations. It involves a complete overhaul and modernization that preserves two historical buildings that have not been comprehensively renovated since their construction in the 1930s.”
Vought escalated attacks on Powell last week, accusing him of misleading Congress about renovation costs and comparing the project to Versailles. In response, the Fed posted an FAQ refuting Vought’s claims, stating that the project isn’t taxpayer-funded and denying allegations of luxury features, such as VIP dining rooms and rooftop terraces.
“No new VIP dining rooms are being constructed as part of the project,” the website says. “Eccles has conference rooms, which are being renovated and preserved. They are also used for mealtime meetings.”
The Fed defended the rise in renovation costs, from $1.8 billion to $2.5 billion, citing design changes, inflation, and unexpected issues such as asbestos and soil contamination. Despite this, Vought told CNBC the White House plans to investigate the project for potential “largesse,” cost overruns, and what he called “fundamental mismanagement” under Powell.
🚨 BREAKING: Fed Chair Jerome Powell asks for an Inspector General REVIEW of his $2.5 BILLION renovation of the Fed building, which has been slammed by Trump and his Housing Director Bill Pulte, per Axios.
Jerome is feeling the pressure as he costs our country hundreds of… pic.twitter.com/ApeLzIeICT
— Eric Daugherty (@EricLDaugh) July 14, 2025
