The Big Money Show Hosts talk about the federal reserves that handling the monetary policy and the fate of the role of Jerome Powells as Fed Chairs.
The chairman of the Federal Reserve Jerome Powell asked the Inspector General of the Central Bank to revise the renovation of its historic headquarters in Washington that Trump officials have seized as a new way to criticize the activities of the Fed in the midst of a urge to force Powell’s dismissal.
During the weekend, Powell reportedly asked the Federal Reserve Inspector-General Michael Horowitz to revise the project-that has been affected by cost telecalations compared to the estimate of the renovation renovation. The news was first reported by Axios, while Reuters quoted a source that was familiar with the request in a subsequent report.
Powell’s request follows a letter he received from the Office of Management and Budget (OMB) director Russell Vought last week, who criticized the price tag of $ 2.5 billion of the project, which had risen around $ 1.9 billion for the pandemic.
Voughte wrote that President Donald Trump, who has repeatedly called on Powell to reduce the interest rates and has threatened to dismiss him, “extremely disturbed” by the renovation project. Other Trump -Bondachten, including FHFA director Bill Pulte, have suggested that the cost overruns of the project would justify the termination Powell “for cause, since the federal law excludes a termination by the President for other reasons.
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Fed Chairman Jerome Powell requested the Inspector General of the Central Bank to revise the renovation project. (Anna Moneymaker / Getty Images / Getty image)
Powell said that he is planning several times to serve the rest of his term of office as chairman and that the central bank relies on economic data, not on political considerations, when taking its monetary policy decisions.
The Federal Reserve placed a FAQ about the renovations of the Marriner S. Eccles building and the building of Constitution Avenue from 1951, which stated that it was to retain two historic buildings that have not been upgraded since their construction in the 1930s.
The renovations include the removal of asbestos and lead pollution; Replacement of outdated electric, sanitary, HVAC, fire detection and oppressing systems; And changes to meet safety and construction codes.
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The years of renovation of the Fed facilities, including the Marriner S. Eccles Federal Reserve building, has experienced cost overruns. (Ting Shen / Bloomberg via Getty Images / Getty images)
The FED wrote that various factors have resulted in cost increases, including “changes in original building designs as a result of consultation with assessment authorities; differences in the time between original estimates and actual costs of materials, equipment and labor; and unforeseen circumstances (for example, more asbestos than expected, toxic contamination, and a higher-theater expansion water
Moreover, the FED document has asked part of the claims asked in his letter. It noted that there is no new VIP -aet room or a VIP lift, although the original lifts are rehabilitated with one that is made more accessible to people with disabilities.
While the first designs include new water features at Constitution Avenue, they have been eliminated and only the original fountains in the ECCLES building are being restored.
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Powell has had to deal with pressure from the Trump government to lower the interest rates, which has been worsened by criticism of the renovation project. (Craig Hudson / Reuters / Reuters)
The document also noted that the “Garden Terrace” in the entry of the FED’s 2021 at the National Capital Planning Commission was the roof of the underground parking structure that lies under the front lawn of the Constitution Avenue facility.
Other “overgrown roofs” or green roofs are used to manage the drainage of rainwater and to improve building efficiency, including in other federal government buildings with the encouragement of the General Services Administration.
The FED noted that it was a few functions on the buildings, including spaces on the roof and new water features, as the project progressed. It also canceled a separate planned renovation of his New York Avenue building in 2024 because of the higher than expected construction costs.
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Moreover, the FED notes that its board of directors was responsible for supervising the project since it was first approved in 2017 and was also supervised by the Bour of Inspector General (OIG) of the Council, which checked the project in 2021.
Reuters has contributed to this report.
