The Fed Shows Reporters Its $2.5B Refurbishment Project As Tensions Grow Before Trump's Visit. | Chiang Rai Times

(CTN News) – On Thursday, the formal, tight-lipped Federal Reserve showed journalists and Trump its expensive headquarters renovation.

Trump and his associates think an afternoon tour of the construction site would reveal a failing organization in a $2.5 billion Fed headquarters and building repair. Media visited pre-Trump facilities.

Trump claims Versailles-style gold estate decoration. The visit is meant to pressure Chair Jerome Powell, who the Republican president has criticized for not cutting borrowing costs. Trump attacked the independence. Financial market and economic stabilization may suffer from Fed independence reduction.

“This stubborn guy at just doesn’t get it—never did, and never will,” Trump said Wednesday on Truth Social. “The Board should act but lacks courage!”

Rare Fed renovation tour for journalists

On Thursday, reporters saw the historic headquarters, the Marriner S. Eccles building, and a second structure across 20th Street in Washington under construction. Construction site materials were moved using front loaders, cement mixers, and plastic tubes.

Workers who sought anonymity said security, materials cost, customs, and historic preservation regulations raised the project’s 2022 budget to $1.9 billion.

New blast-resistant windows and earthquake barriers were needed for DHS security and modern building. Federal experts advised erecting the building with maximal security features, including the “progressive collapse,” which permits only selected areas to fall in a bombing.

Fed personnel handled the president’s tour carefully. Reporters saw 19 members set short-term rates eight times a year in a small room outside the boardroom. The oval will have plywood “oval office” walls and a security booth.

Federal employees mocked the inscription.

Fed officials showed congressional opponents the elevator shaft they say tour VIPs use. Powell authorizes all Fed workers to attend.

The renovation raises the elevator 18 inches (45 cm) above levels previously accessible by steps or ramp. Staff amended a planning document that said the elevator was for the Fed’s seven governors.

Plans precede upgrades.

Renovations were approved by the Fed in 2017. The Trump-appointed Fine Arts Commission and local commissions approved. The commission wants marble in a mainly glass addition at 1951 Constitution Avenue, the second of two Fed buildings under restoration that Trump appointees called a “glass box.”

Fed officials said tariffs and rising building material prices affected costs. Trump implemented 25% steel and 10% aluminum tariffs in 2018. He raised them 50% this year. Government data shows steel costs surged 60% and building supplies rose 50% after the plans were authorized.

Fed officials said historic upgrades are difficult since both buildings must be conserved. They said a new building on an empty lot would have cost less. Reporters saw where crews dug mechanical, storage, and office spaces beneath Eccles. Feds made costly subsurface structural upgrades to avoid HVAC and other equipment on the old roof.

Fed: Underground construction raises project expenses. It is adding three underground parking levels for its second building. The D.C. central bank was built underground due to height limits.

Renovations may replace Powell.

Powell wants to see how Trump’s tariffs effect the economy before cutting rates that could raise inflation, while Trump wants Powell to significantly decrease the benchmark interest rate.

Several government sources deny that Trump will fire Powell for the remodeling project since his term ends in May 2026. Powell was alerted by White House budget director Russell Vought on July 10 that cost-cutting may have violated the NCPA.

The National Capital Planning Commission received two federal employee plan revisions without resubmission. They removed an Eccles roof seating area and two water features in front of the second building to save money.

Trump kept Powell to avoid breaking a May Supreme Court ruling. The Supreme Court only allowed Fed chair firings for cause, but Trump can remove board members of other independent organizations. Trump wants lower borrowing rates, but Powell’s replacement may disrupt global markets.

Some Trump insiders oppose Powell’s departure.

“There’s nothing that tells me that he should step down right now,” Treasury Secretary Scott Bessent, whom Trump has suggested replacing Powell, told Fox Business. ‘He served the public well.’

When asked last week if the expensive makeover warranted dismissing Powell, Trump answered, “I think it sort of is.” Trump added, “When you spend $2.5 billion on, really, a renovation, I think it’s really disgraceful.”

SOURCE: AP