The Fed releases a video tour and details of its headquarters remodel.

The Federal Reserve (Fed) released a video tour and new details about the renovation of two historic buildings at its Washington headquarters yesterday, July 21, as the administration of U.S. President Donald Trump intensifies its attacks on central bank chief Jerome Powell for failing to cut interest rates and criticizes the project's cost and design.

The six-minute, 23-second video, which appears to have been recorded on July 18, shows construction footage overlaid with text descriptions of the project and some of the challenges encountered, such as asbestos abatement and the preservation of details like a long-disused skylight with a decorative eagle.

It also showcases the installation of infrastructure such as blast-proof windows and modern heating, plumbing, and electrical systems.

The White House continues to review the Fed building project, and officials expect to schedule a visit this week, a White House official said yesterday.

James Blair, White House deputy chief of staff and one of three administration officials recently appointed to the National Capital Planning Commission, told reporters last week that officials from the White House and the Office of Management and Budget, as well as several lawmakers, want to tour the facility during the day.

The Fed also released new materials detailing aspects of the project that drew particular criticism from the White House as lavish, including what NCPC planning documents describe as a “governors’ private elevator” leading to “executive dining rooms.”

“The descriptive labels are not representative of our prior or intended use of these spaces,” the new Fed materials say, noting that elevator use is not limited to governors, and that the rooms in question are multipurpose and not part of a “dining room,” as the plans describe.

The U.S. central bank also released diagrams with a large red X showing where planned water features on campus grounds had been removed, resulting in cost savings.

An additional FAQ section in the materials describes the buildings' heritage, including their use as a planning site for the Manhattan Project atomic weapons program during World War II, under 24-hour sniper guard.

The Fed is expected to keep its benchmark interest rate between 4.25 and 4.50 percent at its two-day policy meeting next week.

Powell and most of his colleagues say that although inflation has cooled, they expect Trump's import tariffs to lead to higher prices in the coming months and believe a cut in revenue could reignite inflation.

The Federal Reserve cut borrowing costs three times in the last four months of 2024, but has left its policy rate unchanged since December.

The White House continues to review the central bank building project, and officials expect to schedule a tour this week, an official said.

They call for an "internal review" of Fed operations

U.S. Treasury Secretary Scott Bessent yesterday, July 21, called on the Federal Reserve (Fed) to conduct a "thorough internal review of its nonmonetary policy operations," accusing the U.S. central bank of "significant mission drift."

In a lengthy post on X, Bessent sought to clarify remarks he made in a CNBC interview earlier yesterday, in which he said, “What we need to do is examine the entire institution of the Federal Reserve and whether they have been successful.”

However, Trump and other Republican allies have recently pointed to the Fed's $2.5 billion headquarters renovation project as a possible avenue for his ouster.

Bessent, in his post, mentioned that “Fed independence is a cornerstone of continued economic growth and stability in the United States.”

"However, this autonomy is threatened by the persistent introduction of mandates in areas that go beyond its core mission," he said, without specifying the policy areas.

He requested a review of the over-budget renovation project, although he noted that he has "no knowledge or opinion on the legal basis for the building's massive renovations."