WASHINGTON (AP) — Typically, I dress in suits for trips to the Federal Reserve—a key player in our global financial system. But on Thursday, it was time to swap that out for jeans, boots, and a hard hat.
This wasn’t your standard discussion about interest rates, inflation, or job numbers. No, this was about something way more hands-on: a behind-the-scenes tour of one of the most talked-about renovation projects in Washington, a hefty $2.5 billion overhaul of two office buildings owned by the Fed.
The renovation has become a point of contention for Jerome Powell, the Fed’s chair, who faces continuous public scrutiny from President Donald Trump.
Trump, who appointed Powell back in 2017, has been vocal about his expectations: he wants lower interest rates. However, the Fed operates independently, and recent Supreme Court statements indicate that Trump can’t simply fire Powell because he disagrees with his decisions on interest rates. There is, however, a possibility to remove him “for cause,” suggesting he might need a solid reason, like misconduct. Just last week, Trump hinted that the rising costs of this renovation could justify his dismissal of Powell.
In light of this tense backdrop, the Fed decided to invite some journalists—including myself—for an up-close view of the project.
A First Look at the Renovation
On Thursday, Fed staff guided a small group of us through the construction site, where work is actively progressing on two buildings that date back to the 1930s. This renovation kicked off in 2022, and the Fed aims to wrap it up by the fall of 2027.
By granting us such deep access, the Fed seems to be betting that more transparency will alleviate some of the blunt criticism coming from the White House. Trump himself visited just hours after us and downplayed his earlier threats to Powell.
In a rather bold statement, Sen. Tim Scott, the R-S.C. senator and chairman of the Senate Banking Committee that oversees the Fed, labeled the renovation extravagant, pointing to features like rooftop terraces, specialized elevators that lead to VIP dining areas, opulent marble details, and even a personal art collection.
Fed representatives, speaking on the condition of anonymity, pointed out that many of those so-called VIP dining rooms are really just functioning conference rooms used for meals. They are also working to upgrade an elevator to make it more accessible for individuals with disabilities. Furthermore, some of the expensive marble elements were added due to requests from a local commission comprised of some of Trump’s own appointees.
Navigating through a maze of construction materials and noisy machinery, media members tried to catch staff explanations amidst the clamor of drills and hammers ringing in their ears. About 700 to 800 workers are engaged in the efforts, splitting their shifts between day and night. We even ventured to the rooftop of the main Fed HQ, the Marriner S. Eccles building, which offered stunning views of the Lincoln Memorial, National Mall, and parts of downtown D.C.
Staff assured us that there won’t be any rooftop terraces, but rather a green roof with grass and plants designed to save on cooling costs and manage stormwater runoff. While plans for seating had originally been on the table, they were scrapped as they would not be categorized as necessities.
Breaking Down the Cost
Fed representatives emphasized that many renovation costs stem from factors beyond their control: improvements for security like blast-resistant windows, high-tech HVAC systems, and essential historic preservation—all contributing to the final bill’s size.
Using plywood extensively to shield stairs and wall coverings has also attracted criticism from Trump, who drew attention to the high expense associated with it.
“You saw the plywood protection,” Trump remarked after his visit. “I mean, that was a significant expenditure just to offer some temporary protection. I would have approached it in a much simpler and cost-effective manner.”
This renovation is undeniably substantial—construction has even shut down a road connecting the two buildings, with a parking garage and tunnel being built into the structure of this project. The Fed anticipates being able to house a larger segment of our 3,000 employees within these revamped buildings and subsequently decrease its need for rented spaces.
Following his own site inspection, Trump seemed to dial back the drama surrounding the project when he shared his thoughts on social media: “Yes, the cost overruns are considerable, but overall our Country is doing remarkably well and can handle about any expense—even this building deal!”
If Powell opts to cut the Fed’s short-term interest rates soon—as analysts predict could be happening in September—it may just placate Trump. After that, we might not hear about the construction again.
