Washington: The US Federal Reserve chair has hit back at allegations of wrongdoing in renovations to the central bank's Washington headquarters, saying changes to the 1930s-era buildings were badly needed, duly approved, and transparent.

According to Anadolu Agency, in a late Thursday letter to White House Office of Management and Budget head Russell Vought, Jerome Powell said information on the project was added to the Fed's website as a matter of transparency, and that this information supported his June 25 appearance before a US Senate committee. Stating that they take seriously their responsibility to make the best use of public resources, Powell emphasized the careful oversight of the project since its approval by the Board of Governors in 2017.

Members of the Fed board approve the budget of the project every year, Powell explained. "The project is large in scope because it involves the renovation of two historic buildings on the National Mall that were first constructed in the 1930s. While periodic work has been done to keep these buildings occupiable, neither building has seen a comprehensive renovation since they were first constructed," he wrote.

Powell stressed that the project is proceeding under a plan approved by the National Capital Planning Commission, and that no elements have been added to the plan, except for a small number of design changes to simplify construction and avoid further delays or cost increases. He clarified that the 'garden terrace' in the project is a 'vegetated roof' used to help stormwater management and increase building efficiency and roof life. Powell also denied the construction of "VIP dining rooms" or "VIP elevators" as part of the project.

In a letter sent to Powell last week, Vought raised questions about the renovation and asked Powell to answer them within seven business days. US President Donald Trump has accused Powell of misleading Congress about the project, questioning the $2.5 billion cost of the renovation and suggesting that Powell lacked proper clearance.

Trump, a frequent critic of Powell, has often expressed dissatisfaction with his reluctance to cut interest rates. This week, Trump remarked that he was "surprised he (Powell) was appointed" and labeled him a "terrible Fed chair." Powell was appointed to the position in 2018 by Trump himself, and his tenure was extended by then-President Joe Biden in 2022.