A rare, behind-the-scenes look at the Fed’s $2.5 billion renovation that’s rankled Trump

Ahead of President Donald Trump‘s visit to the Federal Reserve’s construction site, the traditionally tight-lipped institution shared a series of photos on its Flickr page and released a six-minute video tour of its ongoing $2.5 billion renovation.

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One photo, taken in 2018 but shared by the Fed last week, showed damage to the roof coating, pooling water and surface cracks.

Another photo showed an exposed ceiling, construction gear and signs warning of asbestos inside the Marriner S. Eccles building. 

The photo was taken in 2017 but was shared on the Fed’s Flickr page last week.

Planning to overhaul the central bank’s two main buildings—the historic Marriner S. Eccles Building and the adjacent Federal Reserve East Building—began in 2017.

The buildings were erected in the 1930s and have never been fully renovated, according to the Federal Reserve’s website.

In 2021, initial estimates for modernizing the Federal Reserve’s headquarters in D.C.’s Foggy Bottom neighborhood were projected at $1.9 billion.

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The project to update the building’s safety and accessibility standards while preserving its historic architecture broke ground in mid-2022.

The renovation cost has since climbed to $2.5 billion, making it a recent flashpoint between Trump and Federal Reserve Chairman Jerome Powell.

Powell has previously cited inflation, unforeseen construction challenges and rising material costs—particularly for steel—as key drivers behind the renovation’s escalating price tag.

The Fed said in a release that some of the unforeseen conditions that emerged during the renovation include “more asbestos than anticipated,” as well as toxic contamination in the soil and a sinkhole.

Powell has dismissed Trump administration claims that the ongoing construction at the Fed includes lavish dining rooms, private elevators and rooftop garden terraces. 

“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’s 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.

Meanwhile, the funds to cover the Federal Reserve’s ongoing renovation are not coming from taxpayers’ wallets.

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.

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.