Federal Reserve Chairman Jerome Powell made a formal request Monday to the central bank’s inspector general to review the $2.5 billion renovation of its headquarters.
The move is part of a pushback by Mr. Powell against President Trump and the White House, which has used the project’s cost overruns to try to force Mr. Powell out of his job amid the president’s frustration over his refusal to lower interest rates.
A spokesperson for the Inspector General’s office confirmed the request, but declined to comment further.
The review will look into the cost overruns and any other issues the inspector general views as appropriate, according to a source familiar with the matter.
Michael Horowitz, the Justice Department’s Inspector General, was appointed by Mr. Powell in June to serve in the same position with the Fed.
He has earned praise from Trump supporters for uncovering problems with the FBI’s handling of its probe into alleged links between Mr. Trump’s 2016 campaign in Russia.
The move is the latest in a series of steps by Mr. Powell to push back on the White House criticism of the renovation project.
Over the weekend, the Fed posted a Frequently Asked Questions page on its website defending the renovation project, with many of the answers directly rebutting 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 Mr. Powell, about whom Mr. Trump openly talks of replacing before his term expires in May 2026, suggesting that he misled Congress about the cost.
The OMB chief also accused the chairman of building a lavish headquarters with luxury amenities, comparing it to the Palace of Versailles in France.
The Fed’s new FAQ page directly responds to much of Mr. Vought’s criticism, in the latest sign that the Fed and Mr. Powell plan to resist the Trump team’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 the 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 told CNBC on Friday that he plans to launch an investigation into the renovations, saying the administration wants to “have the facts as to the largesse,” any possible cost overruns and a “fundamental mismanagement of the Fed under the chairman.”
