In a rare and unusually tense presidential visit to the headquarters of the US Federal Reserve, President Donald Trump clashed with Fed Chair Jerome Powell on Thursday over the ballooning costs of ongoing renovations at the central bank’s historic buildings.
The visit, part of Trump’s continued efforts to pressure the Federal Reserve to slash interest rates, quickly turned combative as the president criticised the $2.5bn bill for the renovation project, suggesting the costs were edging into fraudulent territory.
Donning hard hats inside the heart of the construction zone, Trump called on Powell to stand beside him and accused the project of now costing $3.1bn. “It looks like it’s about $3.1bn, it went up a little bit or a lot,” Trump said, prompting a visibly irritated Powell to shake his head and respond, “I am not aware of that.”
Trump then handed Powell a sheet of paper, which the Fed Chair briefly examined. Powell clarified that the higher figure appeared to include the cost of renovating the Martin Building, another Federal Reserve facility that was refurbished five years ago. “It’s not new,” Powell added dryly.
The clash underscores the growing tension between Trump and the Fed, as the president intensifies calls for an aggressive interest rate cut, specifically, a three-point drop. The Fed’s current benchmark rate stands between 4.25% and 4.50%, and its 19-member policy committee is expected to leave it unchanged at their upcoming two-day meeting next week.
When asked by a reporter how he would respond if a project manager oversaw such a drastic budget overrun, Trump was blunt: “I’d fire him.” However, he softened his tone shortly after, walking back previous threats to dismiss Powell, a move that has previously spooked financial markets. “To do that is a big move, and I just don’t think it’s necessary,” Trump said. “I believe he’s going to do the right thing.”
Fed officials, anticipating the visit, had earlier escorted journalists through the active construction sites, guiding them around cement mixers and heavy machinery as drills and saws whirred in the background. They pointed out advanced security features, including blast-resistant windows, which they said were partly responsible for the project’s steep cost. Tariffs and rising material and labour prices were also cited as contributing factors.
The encounter adds another dramatic chapter to Trump’s turbulent relationship with the Federal Reserve, a relationship marked by name-calling, public criticism, and ongoing attempts to influence monetary policy.
