{"id":61196,"date":"2026-04-22T17:38:23","date_gmt":"2026-04-22T21:38:23","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/white-house-advisor-hassett-blames-federal-reserve-for-doj-probe-amid-construction-cost-scandal\/61196\/"},"modified":"2026-04-22T17:38:23","modified_gmt":"2026-04-22T21:38:23","slug":"white-house-advisor-hassett-blames-federal-reserve-for-doj-probe-amid-construction-cost-scandal","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/white-house-advisor-hassett-blames-federal-reserve-for-doj-probe-amid-construction-cost-scandal\/61196\/","title":{"rendered":"White House Advisor Hassett Blames Federal Reserve for DOJ Probe Amid Construction Cost Scandal"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>White House National Economic Council Director Kevin Hassett<\/strong> alleges the <strong>Federal Reserve<\/strong> failed to disclose massive <strong>construction cost overruns<\/strong> on its headquarters renovation.<\/li>\n<li>The <strong>Department of Justice (DOJ)<\/strong> has launched a criminal probe into the matter, which the White House asserts was &quot;caused by the Fed&quot; and its lack of transparency.<\/li>\n<li>The renovation project, originally estimated at <strong>$1.9 billion<\/strong>, has reportedly ballooned to over <strong>$2.5 billion<\/strong>, representing a nearly <strong>80% increase<\/strong> over initial budgets.<\/li>\n<li>Federal prosecutors were recently <strong>turned away<\/strong> from the Fed\u2019s construction site during an unannounced visit, escalating a legal stalemate between the executive branch and the central bank.<\/li>\n<li>Markets are closely watching the conflict for its potential to undermine <strong>central bank independence<\/strong> and disrupt the leadership transition of Chair <strong>Jerome Powell<\/strong>.<\/li>\n<\/ul>\n<p>White House advisor <strong>Kevin Hassett<\/strong> issued a sharp rebuke of the <strong>Federal Reserve<\/strong> on Wednesday, claiming that the central bank\u2019s failure to reveal significant <strong>construction cost overruns<\/strong> is the primary driver behind an ongoing <strong>Department of Justice (DOJ)<\/strong> investigation. Hassett stated that the &quot;situation was caused by the Fed&quot; due to a lack of transparency regarding the multi-billion-dollar renovation of its Washington, D.C. headquarters.<\/p>\n<p>The controversy centers on the <strong>Marriner S. Eccles Building<\/strong> renovation, a project that has seen its budget swell from an initial <strong>$1.9 billion<\/strong> to more than <strong>$2.5 billion<\/strong>. <em>Critics within the administration have compared the project\u2019s opulence to historical palaces, citing the use of premium marble and rooftop gardens as evidence of fiscal mismanagement.<\/em><\/p>\n<p>The <strong>DOJ<\/strong>, led by U.S. Attorney <strong>Jeanine Pirro<\/strong>, recently attempted an unannounced site visit to the construction project but was reportedly denied access by building contractors. This move has intensified the legal battle, with the Fed\u2019s legal counsel, <strong>Robert Hur<\/strong>, characterizing the probe as &quot;pretextual&quot; and driven by political animus rather than legitimate criminal suspicion.<\/p>\n<p>Investors are monitoring the fallout for signs of broader market instability, as the public rift threatens the traditional wall between the <strong>White House<\/strong> and the <strong>Federal Reserve<\/strong>. The <a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPY\">SPY<\/a>) has shown increased volatility following the headlines, while the iShares U.S. Construction ETF (<a href=\"\/stock\/ITB\">ITB<\/a>) is being scrutinized for any potential implications for federal contracting standards.<\/p>\n<p>The escalating tension comes as President <strong>Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a><\/strong> continues to threaten the removal of Fed Chair <strong>Jerome Powell<\/strong> before his term expires in May. <em>Political analysts suggest that the construction scandal is being used as &quot;cause&quot; for a potential firing, a move that would be unprecedented in the history of modern American monetary policy.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways White House National Economic Council Director Kevin Hassett alleges the Federal Reserve failed to disclose massive construction cost 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