Powell Requests Review of Fed Building Costs Amid Trump Criticism

Federal Reserve Chair Jerome Powell has requested an inspector general to review the cost of the central bank's building renovations that White House officials have criticized as 'ostentatious'.

A spokesperson for the inspector general, an independent watchdog, confirmed the request but declined further comment. The request was previously reported by CNBC.

The Fed has been renovating two office buildings in Washington for several years, with a current cost estimate of about $2.5 billion, $700 million more than originally expected. Trump administration officials have raised concerns about the expense and alleged amenities in the remodeled buildings to further criticize Powell, whom the president has criticized for not reducing the Fed's short-term rate.

On Thursday, Russ Vought, the president's top budget advisor, stated that President Donald Trump is 'extremely troubled' by the 'ostentatious overhaul' and suggested that it may be violating local building rules.

The letter marked a significant escalation in the Trump administration's efforts to exert more control over the Fed, an independent agency tasked with pursuing stable prices and maximum employment. The Fed's independence from day-to-day politics has long been considered crucial for achieving these objectives.

Trump has consistently urged Powell to lower the short-term interest rate controlled by the central bank, believing it would reduce the government's borrowing costs.

Trump and some officials have called for Powell's resignation, although there is no indication that he will step down before his term ends next May.