US Fed chief asks inspector general to review headquarters renovation project

WASHINGTON -- US Federal Reserve Chair Jerome Powell has asked the central bank's inspector general to review the renovation project of its headquarters after criticism from the White House, according to local media.

Kevin Hassett, director of the National Economic Council, said Monday in an interview with CNBC's Squawk Box: "The idea that the Fed could print money and then spend $2.5 billion on a building without real congressional oversight, it didn't occur to the people that framed the Federal Reserve Act."

"We've got a real problem of oversight and excess spending," he said.

Russell Vought, head of the Office of Management and Budget, also blasted the renovation project in a recent letter to Powell.

In a bid to clarify the spending, the Fed provided details on the project on its website, saying: "The project also remediates safety issues by removing hazardous materials such as asbestos and lead and will bring the buildings up to modern code."

"While periodic work has been done to keep the buildings occupiable, neither building has seen a comprehensive renovation since they were constructed," the Feb explained.

In an interview Sunday with Fox Business, former Fed governor Kevin Warsh labeled the cost of the project as "outrageous," adding that the central bank "has lost its way."