President Donald Trump on Wednesday blasted the ongoing renovation of the Federal Reserve’s headquarters, calling it a “basement in the Potomac River.”
“They’re spending $4 billion on renovating a building that should have cost 25 million bucks,” Trump told an audience at the Kennedy Center during the U.S.-Saudi Investment Forum.
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“They’re building a basement into the Potomac River. I could have told them. That’s very tough to do, and it doesn’t work, and it’s very expensive,” Trump said. “But they’re up to $4 billion, headed by this clown,” he added, referring to Federal Reserve Chairman Jerome Powell.
The renovation to update the Fed’s two main office buildings in Washington’s Foggy Bottom neighborhood is estimated to cost $2.5 billion. The project is being funded by the Fed itself, not by taxpayers.
The Fed is self-financing and does not rely on congressional appropriations or taxpayer dollars to cover its operating expenses, which include salaries, facilities maintenance and even its current renovation. The Fed’s primary income stems from interest it receives on government securities and fees charged to financial institutions.
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Powell previously told lawmakers that the cost overruns are due to unexpected construction challenges and the nation’s inflation rate.
“There’s no new marble,” Powell told members of the Senate Banking Committee in June. “There’s no special elevators. They’re old elevators that have been there. There are no new water features. There are no beehives and there’s no roof garden terraces,” he said flatly.
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Powell also told lawmakers that no one “wants to do a major renovation of a historic building during their term in office.”
“We decided to take it on because, honestly, when I was the administrative governor, before I became chair, I came to understand how badly the Eccles building really needed a serious renovation,” he said, adding that the building is “not really safe” nor waterproof.
A month later, Office of Management and Budget Director Russell Vought sent a letter to Powell calling the building makeover “an ostentatious overhaul.”
Powell fired back in his own letter.
He said both buildings needed “significant structural repairs and other updates,” citing the removal of asbestos and lead contamination and the replacement of some electrical, plumbing, ventilation, fire detection and suppression systems.
The project is expected to be completed in the fall of 2027. Washington, D.C.-based employees will likely work from the building in March 2028.
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