Republicans to challenge Powell on the spending of federal reserves and political bias

Federal Reserve Chairman Jerome Powell returns to Capitol Hill on Wednesday for two days of certificate. He will sit in front of the Senate Banking Committee, as he is expected to face difficult questions from members of the Republican and Democratic Senate.

The appearance follows Powell’s certificate on Tuesday before the Financial Services Committee in the House of Representatives, where he addressed the inflation, President Donald TrumpSuggested definitions, expectations for interest rate discounts.

While these issues are likely to remain focused, Republican members of the Senate Banking Committee are also preparing to face Powell about what they describe as excessive spending in the federal reserve and increased politicization within the agency.

The Federal Reserve Chairman Powell says the American economy in a “strong position”

In a letter obtained by Fox Business before the session, a group of Republican Senators, led by the President of the Banking Committee, Tim Scott, criticized RS.

“At the same time, the Americans are struggling to put food on the table, the Federal Reserve spends billions of dollars to renew two of its offices in Washington, DC,” the letter said.

Legislators were martyred with media reports describing the planned promotions as exorbitant, including “garden balconies on the roof, decorative water features, new elevators that drop their paintings directly into the dining suite for dignitaries, the use of white marble, Italian cells on the roof, and a special artistic set in the basement.”

It is initially expected to cost $ 1.9 billion, and it was reported that the renewal budget was “inflated” by 32 %, which amounts to its new total of $ 2.5 billion, as legislators claim.

“This luxurious renewal is conducted at a time when the Federal Reserve has not made a profit since 2022.”

“We have received the message and plan to respond,” Federal Reserve spokesman told Fox Business.

The agency defended the renewal plans in the past as necessary to comply with updated construction rules and technology infrastructure needs.

Reform criticism at the Federal Reserve headquarters attracted a wider audit, including Elon Musk when he was responsible for the Ministry of Government efficiency (DOGE).

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“Since the end of the day, this is all taxpayers’ money … We must definitely search to see if the Federal Reserve spends $ 2.5 billion on its internal designer, “Musk Mockery For reporters earlier this year, describing the project as “Rayzer’s eyebrow”.

In addition to spending, the Republicans are also expected to pressure what they describe as a political bias in the agenda of the Federal Reserve, a source of concern they raised during Powell’s recent visit to the committee in February.

In their message, members of the Central Bank urged the non -political bank, “in recent years the federal reserve has been vulnerable to political pressure.”

They referred to the changing agency’s position on climate financial issues, noting that it joined the network for the vegetables of the financial system during the era of President Biden, only to leave the group after President Trump returned to his position.

“The federal reserve is supposed to be an agency that plays an important role in the function of our government and the global economy, and therefore it should not only be financially responsible, but also free from politics.”

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Powell often emphasized the non -political nature of the central bank’s monetary policy decisions, explaining earlier this year that the Federal Reserve Bank is “non -political”.

Powell is scheduled to start his testimony before the Senate Banking Committee at 10 am East time on Wednesday.