President Trump publicly challenged Federal Reserve Chair Jerome Powell over the cost of a major renovation project, criticizing the expense and demanding rate cuts in a tense televised exchange.
At a Glance
- Trump asserted the Fed renovation’s cost stood at $3.1 billion, while Powell corrected him live, stating the actual expense is $2.5 billion
- Powell highlighted that Trump’s figure mistakenly included a separate building renovated five years ago, a detail Trump had overlooked
- The dispute unfolded during a rare presidential tour of the Fed’s construction site, broadcast to media with Powell visibly shaking his head as he spoke
- Trump reiterated his call for rapid interest rate reductions and expressed frustration with what he called poor project management
- Though Trump previously floated the idea of firing Powell, he clarified he wouldn’t act unless evidence of fraud emerges
Renovation Showdown Unfolds
During a highly publicized visit to the Federal Reserve headquarters, President Trump and Jerome Powell engaged in an unexpected confrontation. Trump accused the Fed chair of presiding over a ballooning budget, citing $3.1 billion in cost overruns. Powell, visibly flustered, made plain the error by explaining that Trump had conflated a previously completed renovation of the Martin Building with the current project—a renovation completed in 2021—and corrected the record.
Rumors and former statements suggested Trump might seek Powell’s ouster over monetary policy conflicts. Yet, during the event, he appeared restrained, avoiding threats of dismissal while doubling down on his call that rates be slashed. The interaction underscored ongoing tension over the Fed’s independence and financial stewardship.
Watch a report: Trump vs Powell LIVE: Trump, Fed Chair Powell Clash over Fed Renovation Costs
Political and Market Ripples Ahead
The public clash has amplified scrutiny of the Fed’s spending and decision-making autonomy. Treasury Secretary Scott Bessent has joined critiques, calling for a comprehensive review of the Fed’s broader institutional behavior.
Experts warn that politicizing central-bank oversight may introduce volatility into bond and debt markets, by injecting uncertainty into rate expectations and policy credibility. Though the markets initially held steady, analysts say the episode adds to skepticism about the Fed’s insulation from political pressures.