Powell asks inspector general to review $2.5 billion renovation after Trump blasts Fed project

Scandal at the Fed: A $2.5 Billion Building Project Sparks Outrage **Did the Federal Reserve just build a modern-day Palace of Versailles? The White House thinks so.** This isn't just about bricks and mortar; it's about billions of dollars, alleged mismanagement, and a brewing political storm. Get ready to dive into the explosive details.

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A Gold-Plated Renovation? The Eccles Building's Costly Makeover Imagine this: a massive renovation of the Federal Reserve's headquarters—the iconic Marriner S. Eccles building in Washington, D.C.—initially budgeted at a staggering $2.5 billion. But wait, there's more. Cost overruns have blown the budget wide open, sparking a firestorm of criticism from the White House and beyond. This isn't your average construction project; it's a political powder keg.

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President Trump and his administration are furious. They're accusing the Federal Reserve of "fundamental mismanagement," echoing concerns across the nation. Kevin Hassett, director of the National Economic Council, bluntly stated on CNBC's "Squawk Box," "The idea that the Fed could print money and then spend $2.5 billion on a building without real congressional oversight…we've got a real problem." The Inspector General Steps In: An Investigation Underway

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The heat is on. Fed Chair Jerome Powell, facing a barrage of criticism, has called in the inspector general to investigate. This high-level review will scrutinize the project for fraud, waste, and abuse. The investigation was first reported by Axios, sending shockwaves through financial circles. Russell Vought, head of the Office of Management and Budget, didn't mince words. In a scathing letter posted online, he compared the renovation to the opulent Palace of Versailles, accusing Powell of "fiscal mismanagement." He even went on CNBC to reiterate his concerns, fueling the controversy.

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The Fed's Defense: A Necessary Evil? The Federal Reserve isn't staying silent. They've published a detailed FAQ page on their website, attempting to justify the colossal expenditure. They cite necessary safety upgrades—removing asbestos and lead—and bringing the aging buildings up to modern code. They also claim some aspects of the project were scaled back due to unexpected cost increases. But will this be enough to quell the growing outrage?

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One crucial point: the Fed isn't funded by taxpayers and, therefore, isn't directly under the OMB's authority. They've collaborated with the National Capital Planning Commission, but maintain that no further review is needed. A Storm Brewing: Will Powell Survive?

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The controversy extends far beyond the construction site. Former Fed Governor Kevin Warsh, a potential successor to Powell, called the renovation costs "outrageous" on Fox News, adding fuel to the fire and hinting at deeper issues within the central bank. With Powell's term expiring in May 2026, the question looms: will this scandal cost him his job? **Stay tuned. This story is far from over.** The investigation is underway, and the fallout could reshape the financial landscape for years to come. What will the inspector general uncover? Will the public ever get a full accounting of these costs? The answers could change everything.