Over-decoration? The Federal Reserve rarely issued a statement denying: No VIP restaurant, no VIP elevator, no new water view!

A controversy surrounding the renovation project of the Federal Reserve headquarters is evolving into the latest confrontation between Trump and Powell. The Federal Reserve has rarely defended its $2.5 billion headquarters renovation project through a newly added "Frequently Asked Questions" page on its official website, directly countering criticisms from the Trump administration. This page was updated on Friday and explicitly denied the White House's allegations regarding the construction of luxurious facilities such as a "VIP restaurant." According to CNBC, White House budget director Russell Vought wrote to Powell on Thursday, accusing him of "serious mismanagement" of the renovation project and stating that an investigation would be launched. Vought claimed that the renovation plan included luxurious features such as "a rooftop terrace garden, VIP private dining room and elevator, new water features, high-quality marble," etc. The renovation project aims to modernize three buildings overlooking the National Mall, with costs expected to exceed the budget by about $700 million. An article from Wall Street Journal stated that analysts believe the renovation controversy could become a new excuse for Trump to attempt to dismiss Powell over interest rate disagreements, echoing the Nixon administration's tactics in 1972 of undermining the Federal Reserve's credibility by spreading false information. This week, Trump stated that if the White House officials' allegations that Powell misled Congress regarding the Federal Reserve headquarters renovation are true, Powell should "immediately resign". Federal Reserve's Triple Denial: No VIP Restaurant, No VIP Elevator, No New Water Features The Federal Reserve responded to the White House's specific allegations one by one on its FAQ page. According to information on the Federal Reserve's official website, the page clearly states that "there is no construction of a new VIP restaurant in the project" and explains that the meeting rooms in the Eccles Building are being renovated and preserved, which are also used for dining meetings. Regarding the elevator issue, the Federal Reserve clarified that there is no VIP elevator, and the existing elevators are being repaired, including one that serves the historic meeting room. To improve accessibility for individuals with disabilities, this elevator will undergo a short extension. As for the water feature facilities, the Federal Reserve stated that the new water features on Constitution Avenue, established in 1951, have been canceled, and only the existing fountain of the Eccles Building will be repaired. The so-called "garden terrace" actually refers to the front lawn on the ground of Constitution Avenue established in 1951. "Various Factors Led to Cost Increases" The Federal Reserve detailed the main reasons for the cost increases on the FAQ page. According to information on the Federal Reserve's official website, various factors led to the cost increases, mainly including modifications to the original building design after negotiations with review agencies; The actual costs of materials, equipment, and labor differ from the original estimates, as well as "unforeseen circumstances," such as the discovered asbestos exceeding expectations. The project involves a complete renovation and modernization of two historic buildings that have not undergone comprehensive renovations since their construction in the 1930s. The renovations include the removal of asbestos and lead contamination, replacement of outdated electrical and plumbing systems, and compliance with modern safety standards. The Federal Reserve emphasizes that it funds itself through interest income from holding securities and fees charged to banks, and that renovation costs are not borne by taxpayers. Additionally, Powell denied media reports of luxurious configurations during his June congressional hearing, calling them a misunderstanding. Powell vs. Trump Administration! Political Game Intensifies The renovation controversy is seen as a tool used by the Trump administration to exert pressure. The White House advisory group is intensifying pressure on Powell, accusing him of lying or gross mismanagement regarding the renovation project in Congress. Trump has also placed three White House advisors on the federal committee responsible for approving major construction projects in the capital. According to Wall Street Journal citing Timiraos' analysis, Vought's letter aims to uncover "contradictions or violations" in Powell's testimony to create a legal basis for a justified dismissal. This strategy echoes Nixon's 1972 tactic of spreading false information to undermine the credibility of the Federal Reserve. Vought promised on Friday to investigate the renovation project, stating to CNBC, "We want to ensure we have the facts about wastefulness and the extent of overspending." White House Deputy Chief of Staff James Blair warned that if Powell is found to have lied to Congress, "the Board of Governors, the American people, and the Senate will be seriously concerned about this."