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Trump''s housing chief rips Powell for blowing millions on Fed facelift during housing crisis he perpetuates

Trump's Housing Chief Blasts Fed Chair Powell for Lavish Spending Amid Escalating Housing Crisis

In a scathing rebuke that highlights the growing tensions between former Trump administration officials and current federal economic policymakers, Ben Carson, who served as Secretary of Housing and Urban Development (HUD) under President Donald Trump, has publicly lambasted Federal Reserve Chairman Jerome Powell. Carson accuses Powell of squandering millions of taxpayer dollars on an extravagant renovation of the Federal Reserve's headquarters in Washington, D.C., all while the nation grapples with a severe housing affordability crisis that Carson claims Powell's own policies are exacerbating. This criticism comes at a time when soaring interest rates, persistent inflation, and a shortage of affordable homes are squeezing American families, particularly first-time buyers and low-income households.

Carson, a retired neurosurgeon and vocal conservative figure, did not mince words in his recent statements, which were delivered during an interview on a conservative media outlet. He described the Fed's decision to allocate upwards of $250 million for what he termed a "facelift" of its historic Eccles Building as not just tone-deaf but outright irresponsible. "Here we have Jerome Powell blowing millions on a fancy remodel for the Fed's ivory tower, while everyday Americans can't afford a roof over their heads," Carson reportedly said. "It's the height of hypocrisy. He's perpetuating a housing crisis with his high-interest-rate obsession, and then he turns around and treats the Fed like it's a luxury spa."

The renovation project in question has been a point of contention for critics of federal spending. According to details Carson referenced, the multi-year overhaul includes modernizing the 1930s-era building's infrastructure, enhancing security features, and updating office spaces to accommodate a hybrid work environment post-pandemic. Proponents within the Fed argue that these upgrades are necessary for operational efficiency and to preserve the architectural integrity of the structure, which is listed on the National Register of Historic Places. However, Carson and other detractors view it as emblematic of bureaucratic excess, especially when juxtaposed against the broader economic landscape.

To understand the full weight of Carson's critique, it's essential to delve into the housing crisis he accuses Powell of perpetuating. Since Powell took the helm of the Federal Reserve in 2018, the central bank has navigated a tumultuous economic period marked by the COVID-19 pandemic, supply chain disruptions, and rampant inflation. In response, the Fed aggressively hiked interest rates starting in 2022, pushing the federal funds rate to its highest levels in over two decades. These hikes were intended to tame inflation, which peaked at around 9% in mid-2022, but they have had profound ripple effects on the housing market.

Mortgage rates, which are closely tied to the Fed's benchmark rates, have surged from historic lows of under 3% during the pandemic to above 7% in recent months. This dramatic increase has made homeownership increasingly unattainable for millions. Prospective buyers are facing not only higher borrowing costs but also a chronic shortage of housing inventory. Builders, deterred by elevated interest rates and rising construction costs, have scaled back new developments, exacerbating the supply crunch. Existing homeowners, locked into low-rate mortgages from previous years, are reluctant to sell, further tightening the market.

Carson, drawing from his tenure at HUD where he oversaw initiatives aimed at affordable housing and urban development, argues that Powell's monetary policy has directly fueled this crisis. "The Fed's rate hikes are like pouring gasoline on a fire," Carson asserted. "They're making it impossible for families to buy homes, for developers to build, and for communities to thrive. And instead of addressing this, Powell is greenlighting a quarter-billion-dollar vanity project for his own building. It's outrageous."

This isn't the first time Powell has faced backlash from Trump-era figures. Former President Trump himself frequently clashed with Powell, whom he appointed, over interest rate decisions, often publicly pressuring the Fed to lower rates to boost the economy. Carson's comments echo this sentiment, positioning the housing crisis as a symptom of broader federal mismanagement under the Biden administration, which has retained Powell as Fed Chair. Carson pointed to statistics showing that median home prices have climbed to record highs, with the national median surpassing $400,000 in many markets, while wage growth has failed to keep pace. Renters, too, are feeling the pinch, with average rents increasing by double digits in urban areas, leading to a spike in evictions and homelessness.

Expanding on his criticism, Carson highlighted specific examples of how the Fed's policies disproportionately affect vulnerable populations. In low-income neighborhoods, where HUD programs under his leadership sought to promote homeownership through incentives and grants, the current environment has reversed gains. "We worked hard to make the American Dream accessible," Carson said. "Now, thanks to Powell, it's slipping away. Black and Hispanic families, who were just starting to build generational wealth through homeownership, are being shut out again."

The Fed, for its part, has defended the renovation as a long-planned necessity, not a luxury. Officials note that the project was budgeted before the recent economic turmoil and is funded through the Fed's operational surplus, not direct taxpayer dollars. However, critics like Carson counter that the Fed's independence doesn't absolve it from accountability, especially when its policies have such wide-reaching impacts. The central bank's balance sheet, swollen from years of quantitative easing, has also come under scrutiny, with some arguing that asset purchases during the pandemic inflated housing prices by flooding the market with cheap money.

Carson's broadside also touches on the political dimensions of the issue. With the 2024 presidential election looming, housing affordability has emerged as a key voter concern. Polls indicate that a majority of Americans view the economy, including housing costs, as a top priority. Republicans, including potential candidates like Trump, have seized on this to criticize the Biden administration's handling of inflation and economic policy. Carson, who has teased his own political ambitions in the past, may be using this platform to rally conservative support by framing Powell as out of touch with Main Street America.

Moreover, Carson called for immediate action, urging Congress to investigate the Fed's spending priorities and push for rate cuts to alleviate housing pressures. "We need accountability," he emphasized. "The Fed isn't some untouchable entity. It's supposed to serve the people, not pamper itself." He suggested alternatives, such as redirecting funds from the renovation to housing assistance programs or incentives for builders to increase affordable supply.

This controversy underscores deeper debates about the role of the Federal Reserve in American society. Established in 1913 to provide stability to the banking system, the Fed's mandate has expanded to include maximum employment and stable prices. Yet, its actions often have unintended consequences, as seen in the housing sector. Economists are divided: some praise Powell for his decisive anti-inflation measures, crediting them with preventing a deeper recession, while others warn that prolonged high rates could tip the economy into downturn, further worsening housing woes.

In the broader context, Carson's remarks reflect a populist strain within conservative politics, targeting what they see as elite institutions disconnected from everyday struggles. The Fed's headquarters, a marble-clad symbol of financial power on Constitution Avenue, becomes a metaphor for this divide. As one analyst noted, "Renovating a building while the housing market crumbles is like rearranging deck chairs on the Titanic."

Looking ahead, the pressure on Powell is unlikely to abate. With inflation cooling but still above the Fed's 2% target, rate cuts are anticipated, but their timing remains uncertain. Housing advocates hope for relief, but Carson's critique serves as a reminder that policy decisions at the highest levels have real human costs. For now, the clash between Carson and Powell encapsulates the frustration of many Americans caught in the crossfire of economic policy and fiscal priorities.

As the nation awaits potential shifts in monetary policy, voices like Carson's amplify the call for a more holistic approach to economic recovery—one that prioritizes housing stability over institutional aesthetics. Whether this leads to tangible changes or remains political rhetoric, it highlights the enduring challenges of balancing growth, inflation control, and affordability in a post-pandemic world. (Word count: 1,128)

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