Federal Reserve Chair Jerome Powell provided senators with detailed cost breakdowns for the central bank's $2.5 billion headquarters renovation. The information came after his testimony on Capitol Hill, where he faced tough questions about the project's ballooning budget. A letter seen by the Financial Times suggests the Fed is moving to address concerns directly on Capitol Hill.

Powell's correspondence appears to counter claims that he deliberately misled Congress about the renovation's scope and price tag. Lawmakers have grown increasingly skeptical of the Fed's spending habits, especially as inflation remains a persistent concern for the public. This exchange puts the central bank's spending under a rare and uncomfortable public microscope.

The renovation of the Eccles Building has been a decade-long undertaking, originally pegged at a much lower cost. Critics argue such lavish spending contradicts the Fed's message of fiscal discipline that it preaches to the nation. All eyes will now be on the Senate's reaction and whether this disclosure quells the political firestorm.