Controversy Surrounds Fed's $2.5 Billion Renovation Project

Federal Reserve Chair Jerome Powell is facing scrutiny over the escalating costs of a major renovation project at the Fed's headquarters, now estimated at $2.5 billion. Powell has reached out to the Fed's inspector general to reassess these expenses, a move reported by Politico.

The project's financial overruns have drawn criticism from allies of former President Donald Trump, who have long questioned Powell's leadership. Trump has criticized Powell over interest rates and expressed a desire for his resignation; however, he cannot remove him from office over monetary policy disagreements.

The renovation's price tag has also caught the attention of the Trump administration, with White House economic adviser Kevin Hassett confirming inquiries into the matter. Powell's recent communications, including a letter to key lawmakers, suggest efforts to address transparency concerns, as the inspector general continues to have full access to project details.

(With inputs from agencies.)