The standoff between the Trump administration and the Federal Reserve just got more interesting. Turns out Jerome Powell already told Congress about the Fed's expensive building renovation in considerable detail, which makes the criminal investigation's premise look a bit shaky.
Powell Explained the Cost Overruns Months Ago
According to the Financial Times, Powell sent a letter to senators back in July laying out extensive details about the Fed's $2.5 billion renovation project. The letter went to Senate Banking Committee chair Tim Scott (R-SC) and Democrat Sen. Elizabeth Warren (D-Mass.) about two and a half weeks after Powell testified before the committee about cost overruns.
In it, Powell explained why the project ran $700 million over budget. The culprits? Higher costs for materials, equipment, and labor, plus some unpleasant surprises during construction, including asbestos and toxic soil contamination. You know, the kind of stuff that tends to happen when you renovate an old building.
The Fed's board approved the renovation back in 2017, with completion expected next year.
Meanwhile, Jeanine Pirro, the U.S. attorney for the District of Columbia running the criminal probe, told Fox News host Sean Hannity on Tuesday that her office issued subpoenas partly to get more information about "the chairman's congressional testimony" on the project. She claimed the office had requested this information multiple times and been ignored.