Federal Reserve to get 'Palace of Versailles' renovation

Topline: The planned renovation of the Federal Reserve's office buildings will cost $2.5 billion and include rooftop gardens, skylights, water displays and more, according to planning documents reviewed by the New York Post.

Key facts: Construction will focus on the Marriner S. Eccles Building and Federal Reserve Board-East buildings in downtown Washington, D.C. The buildings will be outfitted with Georgian white marble, and there will be a new elevator system that drops Federal Reserve board members off in their private dining suite, according to the Post.

The Senate Banking Committee held a hearing on June 25 to investigate the renovation, where Federal Reserve Chair Jerome Powell testified under oath that, "There's no VIP dining room, there's no new marble. There are no special elevators. There are no new water features, there's no beehives, and there's no roof terrace gardens."

On June 30, the Post published a follow-up story with direct excerpts of the building plans filed with the National Capital Planning Commission. According to the Post, the plans state that "The private dining rooms on Level 4 will be restored," and "The Governors' private elevator will be extended to discharge at the dining suite level." There is also a mention of "vegetated roof terraces" that will welcome "urban wildlife and pollinators" and new marble and water features.

Regardless of whether Powell or the Post is correct, it's clear the Federal Reserve renovation will be a huge expense for taxpayers. The project was supposed to cost $1.9 billion when it was approved in 2019, but the Federal Reserve blames the cost overrun to $2.5 billion on the rising price of building materials.

Critical quote: Sen. Tim Scott (R-SC) compared the project to the Palace of Versailles during the Senate hearing. Elon Musk said the Department of Government Efficiency should investigate the project during a White House press conference in May, asking, "I mean, what do you get for $2.5 billion in redecorating? Must be incredible."

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Background: The planned renovations come at a time when federal buildings have $370 billion of needed repairs, including military barracks that are at risk of sewage overflow and have broken fire alarm systems.

Summary: Federal buildings should be designed with practicality in mind, not luxury. If the Federal Reserve is focused on the latter, Congress may need to step in.

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This article was originally published by RealClearInvestigations and made available via RealClearWire.