💎Federal Reserve Board defends Eccles Building renovation to Congress

Economy
Ethics in Government

Federal Reserve Chairman Jerome Powell defended the $2.5 billion headquarters renovation July 18, 2025, responding to White House criticism that the project costs 10 times original estimates. The renovation features Italian marble and specialized finishes while Trump cuts social programs, with OMB Director Russell Vought accusing Powell of 'fundamental mismanagement.' Ironically, Trump appointees on the Fed board approved the luxury upgrades in 2023, and Trump's own Commission of Fine Arts mandated expensive marble over glass in 2020.

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Why This Matters

$2.5 billion renovation equals 5 years of school lunch for 2 million children nationwide

While Powell authorizes $75 million for imported marble alone—more than most cities' annual budgets—Congress cuts SNAP benefits affecting 41 million Americans.

Trump appointees demanded expensive marble in 2020, now attack costs they created

Trump's Commission of Fine Arts rejected Fed's glass facade plans, mandating costly "white Georgia marble" under presidential neoclassical building orders, adding $600 million in overruns.

Pandemic supply chain chaos and DC swamp soil drove 10x cost explosions

Structural steel prices spiked in 2021-2022, labor shortages hit mechanical trades, plus contractors discovered asbestos and water table issues requiring specialized excavation in height-restricted DC.

Trump weaponizes renovation scandal to pressure Powell for election-year rate cuts

White House sources confirm Trump demands rate reductions before 2026 midterms or face contracting investigations—using construction costs to compromise Fed independence.

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