Fed Pushes Back Quietly against Trump over $2.5 Bln Headquarters Renovation

As tensions escalate between the Trump administration and the Federal Reserve, the U.S. central bank has responded with quiet resolve to recent accusations regarding the $2.5 billion renovation of its historic headquarters in Washington, D.C.

Instead of issuing press statements or direct rebuttals, the Fed opted to update the FAQ section on its official website, calmly addressing what it referred to as “mischaracterizations” of the project. The updated page, last modified on Friday, comes just days after sharp criticism from Russell Vought, Director of the Office of Management and Budget under President Donald Trump.

Mounting Criticism from the White House

In a post on X (formerly Twitter), Vought accused Fed Chair Jerome Powell of “gross mismanagement”, calling the project an example of government excess. He claimed the renovation included “rooftop gardens, VIP dining rooms, luxury elevators, water features, marble interiors, and more.”

President Trump himself has reignited personal attacks on Powell in recent weeks, accusing him of political manipulation by refusing to lower interest rates. Insiders now believe the administration is considering removing Powell before his term ends in 2026.

The Fed Responds – With Facts, Not Fire

In the updated FAQ, the Federal Reserve clarified key elements of the renovation plan:

The upgrades affect three buildings, two of which date back to the 1930s and have not seen major renovation since.

The buildings are being modernized to meet safety, energy efficiency, and accessibility standards, not luxury enhancements.

There are no private VIP dining rooms being constructed, contrary to Vought's claims. The Eccles Building includes meeting rooms used for working meals, but not new executive dining areas.

The central bank emphasized that no taxpayer funds are being used, as the project is financed by revenues from its own operations, including interest on securities and bank service fees.

“The primary drivers of cost increases are changes required by historical preservation boards, evolving building codes, and unforeseen structural conditions,” the Fed’s website notes.

Construction costs alone are projected to exceed $700 million, surpassing initial estimates—but the Fed maintains the overall project remains necessary and justified given the age and structural needs of the facilities.

A Broader Political Standoff

This latest exchange marks a new chapter in the ongoing Trump-Powell power struggle, which has spanned interest rate policy, inflation response, and now—office renovations.

Political analysts suggest the Trump administration’s growing focus on the Fed’s budget is part of a broader effort to delegitimize Powell and potentially justify his removal.

While the Fed has historically sought to maintain its independence and neutrality, the updated FAQ signals a shift toward greater transparency and self-defense, as it navigates both economic challenges and political turbulence.