Trump Orders Inspection of Fed’s $2.5 Billion Renovation Amid Tensions

President Donald Trump’s administration is set to inspect the Federal Reserve’s $2.5 billion renovation project at its Washington headquarters. This move comes amid rising tensions between the White House and Fed Chair Jerome Powell, with Trump accusing Powell of possible fraud related to the costly project. No evidence has been presented to support these claims, but the situation has escalated to the point where Senate Banking Chair Tim Scott is reportedly in talks to join the inspection, indicating increased scrutiny of the central bank.

Trump has long been critical of Powell over the Fed’s reluctance to cut interest rates. The renovation project has now become a new point of conflict. According to White House Deputy Chief of Staff James Blair, Powell informed the administration that the renovation’s design plans had changed since the original proposal. Blair stated, “We just want to know whether or not that’s true.”

Trump has taken a personal stance against Powell, whom he appointed in 2018. Recently, Trump referred to Powell as “The Worst Federal Reserve Chairman in History” on Truth Social. He is using the renovation issue to support his push to remove Powell, suggesting mismanagement or fraud without offering proof.

In response to the criticism, Powell has defended the renovation project. In a letter to the Office of Management and Budget, he explained that the two buildings, which date back to the 1930s, require significant upgrades. These include removing asbestos, repairing structural damage, and modernizing plumbing, fire detection systems, and other infrastructure. Powell emphasized that the project reflects the Fed’s commitment to responsible use of public funds and ensuring a safe and functional workplace.

The inspection by Trump’s team raises broader questions about political pressure and the future of the Federal Reserve’s independence. With Powell continuing to defend the project and his leadership, the conflict is likely to escalate. Whether the inspection uncovers real issues or becomes a political statement, it could have long-term effects on the Fed and U.S. monetary policy.