HUD’s Scott Turner condemns Fed Chair Powell for costly renovations during a housing crisis and defends cost-saving agency relocation.

HUD Secretary Rebukes Powell Over Spending Amid Housing Woes

Housing and Urban Development Secretary Scott Turner sharply criticized Federal Reserve Chair Jerome Powell this week for authorizing a $2.5 billion renovation of the Federal Reserve’s headquarters, while Americans face mounting obstacles to home ownership due to high interest rates. Turner’s remarks come amid ongoing frustration within the Trump administration over the Fed’s reluctance to lower rates, which would make mortgages more affordable for millions of prospective buyers.

Turner described the renovation as an egregious use of taxpayer dollars, arguing that “an unelected bureaucrat like Powell is wasting billions on building renovations while Americans struggle to buy homes due to high mortgage rates, which are directly impacted by his refusal to lower interest rates.” The Fed’s overhaul of the Marriner S. Eccles Building in Washington, D.C. has repeatedly run over budget, reaching a $2.5 billion price tag, even as the central bank maintains its benchmark interest rate between 4.25% and 4.5%.

The Trump administration has been vocal in its calls for the Fed to ease borrowing costs, contending that inflation is under control and that lower rates would spark economic growth. President Donald Trump has gone so far as to label Powell’s actions a possible “fireable offense,” repeatedly criticizing him for failing to act quickly enough to address the housing market’s challenges. At a recent NATO summit, Trump called Powell “terrible” and “a very average mentally person” while dismissing the renovations as unnecessary excess.

HUD Moves Out of D.C. in Cost-Saving Effort

In contrast to the Fed’s spending, HUD announced its own relocation plan, moving the department’s headquarters from the long-troubled Robert C. Weaver Building in Washington, D.C. to the National Science Foundation’s existing facility in Alexandria, Virginia. Turner emphasized that the move would save taxpayers $22 million annually in operations and maintenance, and help avoid the costly repairs that have plagued HUD’s former home for years. The government also expects to generate substantial revenue from the sale of the prime D.C. real estate.

“HUD’s move isn’t about me – our workforce deserves to be in a building that is safe and that fits our needs,” Turner said. He contrasted the agency’s approach with what he characterized as Powell’s indifference to fiscal stewardship: “Instead of spending nearly a half-billion dollars on renovations, HUD and GSA are saving taxpayers money – something Chairman Powell thinks he is above.”

While the Federal Reserve has stated that the board “takes the responsibility to be a good steward of public resources,” the agency faces continued scrutiny over transparency and spending. The Fed’s website details its accountability mechanisms, including regular Congressional testimony and published monetary policy reports. However, the optics of such a major renovation in the current housing climate have fueled bipartisan criticism.

Democratic lawmakers have also weighed in, with Massachusetts Senator Elizabeth Warren faulting Trump’s tariffs for high rates and questioning whether targeting Powell is the solution. She noted, “If Trump were serious about lowering interest rates, he would rein in his chaotic tariffs.”

HUD’s decision to relocate reflects a broader push within the administration to cut costs, improve agency efficiency, and free up resources as housing affordability remains a pressing national concern. As the debate over interest rates and agency spending continues, Americans looking to purchase homes are watching closely for signs of relief in a challenging market.