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Powell rejects several media claims on Fed renovation as senators press for detailed accounting of $2.5 billion cost overrun
Summary
Senators pressed Chair Jerome H. Powell about a multi‑billion dollar renovation of the Fed's historic headquarters. Powell disputed several media characterizations of the plans and said the Fed will provide a detailed response to the committee’s letter about cost drivers and changes in the plans.
Senators on the Banking Committee asked Federal Reserve Chair Jerome H. Powell to explain a reported multi‑billion dollar increase in renovation costs for the Fed’s Washington offices and to provide documentation of what has driven the increase.
At the hearing, senators cited media reports and National Capital Planning Commission materials that listed rooftop terraces, ornate water features, white marble finishes and elevators described in some press accounts as delivering members to ‘‘VIP dining’’ areas. Some senators described the total project cost as $2.5 billion, up from an originally reported $1.9 billion.
Powell disputed several of those specific characterizations. He told senators that "there's no VIP dining room," "there's no new marble" in the sense portrayed by the press, and that media accounts of ‘‘beehives’’ and roof‑top gardens were inaccurate or no longer reflected in plans. Powell said parts of the building are historic and required replacement of damaged materials; in some places new marble will be used where old marble broke.
Powell said the Fed takes stewardship of public funds seriously and that the board will provide a fuller response to a committee letter received the day before the hearing. "We will provide a much more detailed response," he said, adding that the major drivers of cost increases are not the decorative features reported in the press.
Why it matters: The size and character of renovations at a public institution that performs a central banking function raise public scrutiny when costs rise into the billions. Senators pressed for clarity on plan changes, the timing of revisions, and whether media coverage reflected current designs.
What senators asked for: Multiple senators invited Fed staff to brief committee staff, asked for page‑by‑page explanations where planning documents had been cited, and sought materials on the specific cost drivers Powell says explain the overruns. Powell welcomed the opportunity to meet with committee staff and to provide additional documentation.
