△Federal Reserve Chairman Jerome Powell (Photo)
On July 17th, local time, in response to the high-ranking officials of the Trump administration accusing the Federal Reserve’s headquarters renovation of being “luxury waste,” Federal Reserve Chairman Jerome Powell responded in writing.
He emphasized that since the project was approved in 2017, it has been subject to strict supervision. In his reply, Powell highlighted that there are serious structural aging issues at the Federal Reserve headquarters and its affiliated buildings, requiring the replacement of materials containing asbestos and lead, and a comprehensive update of systems such as electricity, heating, and fire protection. He also pointed out that the project had been modified to reduce costs and avoid delays, without involving significant changes, thus not resubmitting for review.
Powell made it clear that the Federal Reserve is not part of the National Capital Planning Commission (NCPC), but rather operates on a “voluntary collaboration” basis. His statement aimed to defend the independence of the Federal Reserve and respond to external criticisms about its financial management and policy independence.
Since the beginning of this year, Trump has repeatedly criticized Powell and threatened to remove him from his position as Fed Chairman, using this pressure to force the Fed to cut interest rates. Recently, the Trump administration has frequently mentioned the Federal Reserve’s spending of $2.5 billion on the renovation of its office building, labeling it as “cost overruns,” further pressuring Powell with demands. (Xu Xiao)