Federal Reserve Chair Jerome Powell has asked the central bank’s inspector general to review the rising costs of its building renovations, following sharp criticism from US President Donald Trump and his administration.
A spokesperson for the inspector general confirmed the request, which was first reported by Axios, but declined to provide further details.
The Fed is renovating two of its office buildings in Washington, with the project now estimated to cost $2.5 billion — $700 million more than initial projections.
Approved in 2017, the project has drawn increasing scrutiny from the Trump administration, which has accused Powell of overseeing unnecessary and lavish spending.
On Thursday, Russ Vought, Trump’s top budget adviser, said the president was "extremely troubled" by what he called an "ostentatious overhaul," and suggested the renovations may violate local planning rules.
The White House criticism is part of a broader campaign to assert more control over the central bank.
Trump has repeatedly demanded that Powell lower interest rates and has even threatened to fire him — though the Supreme Court recently signalled such a move would be unlawful without cause.
The law allows the Fed chair to be removed only for misconduct or neglect of duty.
Powell’s current term runs until May 2026.
Vought’s letter questioned Powell’s leadership and suggested the Fed bypassed Washington’s National Capital Planning Commission.
However, the Fed said in a public FAQ that it is not legally bound by the commission and complies voluntarily.
Some Republican lawmakers have pointed to alleged features such as rooftop terraces and custom elevators.
Powell rejected those claims in a recent Senate hearing: "There’s no VIP dining room. There’s no new marble. There are no special elevators."
He said what was described as a "garden terrace" is simply a ground-level lawn atop a garage that helps manage stormwater and improve energy efficiency.
Meanwhile, Trump renewed his attacks on Powell Monday, saying the Fed chair is "terrible" and "doesn’t know what the hell he’s doing."
Powell has resisted further rate cuts while assessing the inflationary impact of Trump’s tariff policies.
Economists warn that aggressive rate reductions — as the president has called for — could worsen inflation if import taxes drive prices higher, though they could be needed later if tariffs slow economic growth.
Despite mounting political pressure, Powell has shown no indication he will step down before his term ends.
