Trump Administration Targets Fed’s $2.5B Renovation Amid Political Tensions

Former President Trump's allies are pushing for an investigation into the Federal Reserve's $2.5 billion renovation project, framing it as wasteful spending. The MOVE appears politically motivated, aiming to pressure Fed Chair Jerome Powell, who has resisted interest rate cuts demanded by Trump. The renovation covers two historic buildings—the 1937 Marriner S. Eccles Building and the 1931 East Building—both overdue for upgrades after nearly a century without major overhauls.

Powell defended the project in a July 17 letter, emphasizing transparency and compliance with environmental and accessibility standards. He revealed the Eccles Building had reached a critical state, being neither SAFE nor waterproof. Cost overruns, partly due to 2021 steel price spikes and multi-agency design reviews, pushed the budget 30% above initial estimates. The Fed's Inspector General will now review the entire project.