Trump vs Powell: Federal Reserve Renovation Costs Spark DOJ Probe

Renovations to the Federal Reserve's Washington headquarters sparked controversy when cost overruns reached $2.46 billion, prompting President Donald Trump to publicly criticize Fed Chair Jerome Powell in April 2025.

The renovations began in 2017 and were initially budgeted at $1.88 billion, but increased significantly due to rising material costs and design changes mandated by the national planning commission.

Powell attributed most of the cost overruns to inflation and unanticipated expenses, including asbestos handling, while Trump was 'extremely troubled' by the issue and considered filing a lawsuit against Powell.

The controversy led to a Department of Justice investigation, which ultimately found 'deficiencies' in the Fed Board's oversight of the project but no misconduct or grounds for a criminal referral.