Federal reserve chairman Jerome Powell pushed back against the accusation of the White House that he “grossly managed” the reconstruction of the Fed headquarters of $ 2.5 billion. Russell’s budget chief Vought claimed that the project was a “spectacular” luxury, such as VIP canteens and marble finishes, with $ 700 million through the budget.
What did Jerome Powell answer?
In the letter of Voght, Powell stressed that renovation deals with critical security needs in a 90 -year -old building, including removal of toxic asbestos and updating dangerous electrical systems. President Trump described the project as “shameful” and suggested that it could justify Powella shooting.
“As explained on the public board’s public website, we seriously take responsibility for good public resources, because we fulfill the duties that Congress granted us on behalf of the US people,” Powell wrote in his letter to the Russell Voghned Budget and Director, according to Reuters.
“We have ensured us to ensure that the project is carefully supervised because it was first approved by the Board of Directors in 2017,” Powell continued.
The cost of reconstruction of the Fed headquarters jumped from 1.9 billion to $ 2.5 billion due to unexpected dangers. Builders found much more asbestos causing cancer than expected, contamination of toxic soil and groundwater problems requiring costly repairs.
Building inflation also increased the prices of steel and cement by 30% after the project began in 2019. Powell noted these challenges in his reaction: “We take seriously good public resources”. The Fed also canceled the plans for the renovation of the third building to check the expenditure.
Political pressure intensifies
Trump officials caught up with Powell’s pressure above interest rates. Voght demanded answers within seven days of “rich” functions and problems with compliance with the project regulations.
Trump also placed an allies on the National Capital Planning Commission, which oversees federal buildings. Commissioner James Blair accused Powell of the misleading congress of design changes and potentially gives Trump the “cause” to fire him. Powell asked the General Inspector Fed to examine the costs of renovation in the middle of the attacks.
The fight against reconstruction threatens the independence of the Fed because Powell resists Trump’s requirements to reduce rates.
(Tagstotranslate) Federal Reserve (T) Jerome Powell (T) Renovation of the head of Russell Vought
