1. Trump Administration Escalates Criticism of Fed and Powell

The Trump administration has intensified its attacks on the Federal Reserve and its Chairman Jerome Powell, accusing the central bank of mismanagement and excessive spending on a major renovation project. Leading the charge is Russell Vought, Director of the Office of Management and Budget, who labeled the renovation “an ostentatious overhaul.”

This marks the latest front in Trump’s long-running feud with Powell, whom he has repeatedly criticized for refusing to lower interest rates.

2. Fed Responds Quietly with Website FAQ Page

In response, the Fed has quietly launched a new “Frequently Asked Questions” page on its official website, updated on July 11, aimed at defending its $2.5 billion headquarters renovation project.

The page:

Addresses key criticisms from the Trump administration

Provides clarity on cost overruns and project scope

Emphasizes that no taxpayer money is being used for the renovation

3. What the Renovation Entails

According to the Fed, the renovation involves:

Modernizing three buildings overlooking the National Mall, including two historic structures built in the 1930s

A full infrastructure overhaul, including asbestos removal, improved energy efficiency, and seismic retrofitting

Enhancing the long-term functionality of the central bank’s campus

The Fed asserts the project is essential to preserving historic value while meeting modern operational needs.

4. Trump Allies Call Out “Lavish Spending”

Vought’s open letter, shared on social media platform X, claimed the renovation includes:

VIP private dining rooms

Rooftop gardens

Premium marble, water features, and luxury elevators

He further accused Powell of mismanagement and suggested that the project is massively over budget — by roughly $700 million.

Vought has also called for a formal investigation, saying:

“We want to make sure we have facts as to the largesse and the extent to which it’s overrun.”

5. Fed Refutes Misleading Claims

The Fed’s FAQ page pushes back directly:

“No new VIP dining rooms are being constructed as part of the project.”

The page also explains that while the Eccles Building does contain conference rooms used for meetings that may involve meals, these rooms are being renovated and preserved, not newly constructed.

As for the cost overruns, the Fed attributes the increase to:

Design changes after consultation with regulatory and historic preservation agencies

Unforeseen conditions, including more extensive asbestos than originally anticipated

6. No Taxpayer Dollars Involved

A key message on the FAQ page is that the renovation is fully self-funded:

“The Federal Reserve is funded through interest income on its securities and fees it charges financial institutions — not through congressional appropriations.”

In other words, no federal taxpayer dollars are used for this $2.5 billion project.

7. Political Undercurrents: Effort to Remove Powell?

Some analysts view the controversy as part of a broader effort by the Trump administration to oust Powell before his term ends in 2026. Trump has openly stated that Powell is politicizing monetary policy, while Powell has resisted pressure to cut interest rates despite Trump’s repeated calls.

The Fed’s decision to publish this FAQ is seen by many as a rare public defense — signaling that the central bank is ready to defend its independence.

8. What Happens Next?

Vought’s Friday comments and public investigation pledge indicate that:

The issue may remain in the political spotlight, especially as the 2024 presidential election looms

Trump’s allies may use the renovation project as a wedge issue to question Powell’s leadership

The Fed may face increasing scrutiny but remains committed to transparency and factual communication

Conclusion: The Fed Holds Its Ground Amid Political Heat

As the Trump administration ramps up its attacks, the Federal Reserve is taking a more measured, data-driven approach to defend its actions. With no taxpayer dollars involved and clear explanations for the cost increases, the Fed hopes to reassert its credibility and independence in the face of rising political pressure.

Whether this digital rebuttal will curb the criticism — or only inflame it — remains to be seen.