Jerome Powell, the chair of the U.S. Federal Reserve (Fed), firmly refuted allegations of excessive budget expenditure and design changes surrounding the remodeling project at the Fed headquarters, saying, "There were no significant changes."
On the 17th (local time), Powell indicated in a letter to Russell Vought, the director of the Office of Management and Budget, that "the Fed voluntarily submitted the design changes to the National Capital Planning Commission (NCPC) and received formal approval in 2020 and 2021." He emphasized, "The subsequent changes were actually aimed at simplifying construction and controlling costs."
Previously, director general Vought sent a letter to Powell on the 10th, claiming that the Fed had spent excessive costs on the building remodeling and had not properly notified the NCPC of the changes. He pointed out, "The construction costs skyrocketed by an additional $700 million to a total of $2.5 billion (approximately 3.5 trillion won) due to add-ons like rooftop gardens, artificial waterfalls, VIP elevators, and marble decorations."
In response, Powell explained, "The two buildings targeted for remodeling were built in the 1930s and had not undergone a complete renovation since then," stating, "This project includes extensive renovations involving the removal of asbestos and lead contamination, and a full replacement of electrical, plumbing, and heating and cooling systems."
Powell added, "According to NCPC guidelines, additional approval is only required in the case of 'significant design changes,' and this change does not meet that criterion."
U.S. President Donald Trump also criticized the issue in an interview the previous day with the online media "Real America's Voice," stating, "It exceeded the budget by nearly $1 billion" and said it would become one of the most expensive buildings in the world. He noted, "They say they are spending $2.5 billion, and someone like me is adept at such issues," adding, "I will take a look myself."
Some Republicans are suggesting that this issue could lead to renewed pressure on Powell's position.