It’s true that officials from the Trump administration have criticized the Federal Reserve over the project's cost, which has reached $2.5 billion—about $600 million more than originally budgeted, according to the Associated Press. However, the Fed cited several factors contributing to the overrun, including construction costs that spiked in 2021 and 2022 due to inflation in materials and labor, the discovery of more asbestos than expected, and the added expense of building underground due to Washington, D.C.’s restrictions on building height.
As for the alleged “shady stunt” by Fed Chair Jerome Powell, this appears to refer to a renovation tour that was scheduled after hours when no one else was present, according to Bill Pulte, Chairman of the Board of Fannie Mae and Freddie Mac. Pulte, who has a notably adversarial relationship with Powell—even stating he is “encouraged” by the idea that Powell might resign—has helped amplify this claim. However, the AP reports that the Fed has publicly posted videos of the renovations, suggesting that this narrative is exaggerated and intended to cast suspicion on Powell and the Fed without clear evidence of wrongdoing.
