The Federal Reserve Bank has quietly pushed back against the White House’s criticism of the central bank’s $2.5 billion plan to renovate its headquarters in downtown Washington.
Over the weekend, the Fed posted a Frequently Asked Questions page on its website defending the renovation project, with many of the answers directly refuting criticism from White House Office of Management and Budget 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.”
Mr. Vought last week escalated the administration’s attacks on Fed Chairman Jerome Powell, whom President Trump openly talks about replacing, suggesting that he misled Congress about the cost of the renovations. He accused the Fed Chair of building a lavish headquarters with luxury amenities with federal dollars.
Mr. Vought blasted the renovation proposal as egregious and compared it to the Palace of Versailles in France. The attacks appear to be the latest effort by the White House to force Mr. Powell out of his job before his term expires in May 2026.
However, the Fed’s new FAQ page directly responds to much of Mr. Vought’s criticism. It is the latest sign that the Fed and Mr. Powell plan to hit back against the Trump administration’s attacks.
It said taxpayers are not footing the bill for the renovations because the Fed is self-funded through the interest it makes on securities held by the institution and through fees it charges banks.
Mr. Vought said the renovations call for VIP dining rooms, rooftop terraces, gardens, premium marble, elevators and more. The Fed’s FAQ says that simply isn’t true.
“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 also hit back on Mr. Vought’s complaint that the renovation has blown past cost estimates. Originally, priced at $1.8 billion, the renovations now carry a $2.5 billion price tag.
In its FAQ, the Fed said the cost increases were because of changes to the original design that resulted from its review with other federal agencies, increases in the cost of materials, equipment and labor, and “unforeseen conditions” such as more asbestos than anticipated and toxic contamination in the soil.
Still, the White House remains undeterred. Mr. Vought on Friday told CNBC that he plans to launch an investigation into the renovations, saying the administration wants to “have the facts as to the largesse and the extent to which it’s overrun.”
