Powell Corrects Trump on Central Bank Project Spending/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ During a visit to the Federal Reserve, President Donald Trump publicly challenged Chair Jerome Powell over renovation costs, citing a $3.1 billion figure. Powell disputed the number, clarifying that Trump had included a separate, completed project in his estimate. The tense exchange adds to Trump’s ongoing campaign to pressure Powell over interest rate policy.
Trump vs. Powell + Quick Looks
- Trump cites $3.1 billion for Fed renovation during live tour
- Powell says Trump’s figure includes a five-year-old completed building
- Fed maintains current project budget is $2.5 billion, up from $1.9B
- Trump urges completion of project and deeper interest rate cuts
- Powell defends fiscal discipline amid ongoing inflation monitoring
- White House insists overrun still “massive” despite correction
- Clash reflects broader tension between Trump and Powell over Fed policy
Trump Challenges Fed Chair Powell on $3.1B Renovation Budget
Deep Look
In a live and unscripted moment Thursday, President Donald Trump confronted Federal Reserve Chair Jerome Powell over the cost of renovating the Federal Reserve’s Washington headquarters — and Powell pushed back, correcting Trump’s claim in real time. The two figures, dressed in hard hats and suits, toured the under-construction facility as cameras rolled, marking a rare public exchange between the White House and the central bank.
As Trump gestured toward the ongoing renovations, he declared that the cost had ballooned to $3.1 billion — far beyond what the Fed has officially reported.
“It looks like it’s about $3.1 billion, went up a little bit or a lot,” Trump said. Powell, visibly skeptical, responded calmly: “I’m not aware of that, Mr. President.”
Trump insisted the number was accurate, pulling a folded paper from his jacket. Powell examined the document, put on his glasses, and immediately identified the discrepancy.
“Are you including the Martin renovation?” Powell asked, referring to a separate building project completed five years earlier. “You just added in a third building.”
Trump, not backing down, responded, “It’s a building that’s being built.” Powell replied, “No, it was built five years ago.”
The Federal Reserve has maintained that the ongoing renovation of its main headquarters costs $2.5 billion, up from an original estimate of $1.9 billion. The central bank has been transparent about the budget revisions, which stem largely from inflationary pressures and construction delays. Trump’s figure appears to conflate that cost with an earlier project at the nearby Martin Building, which is no longer under construction.
The verbal clash came during what was intended to be a ceremonial tour but quickly turned into a public airing of a deeper tension. Trump has spent months criticizing Powell for being too slow to cut interest rates, frequently branding him “Too Late Powell” and suggesting that monetary policy is undermining economic growth.
Following the tour, Trump reiterated his demands: complete the renovation quickly and slash benchmark interest rates. Powell, however, has remained steadfast, saying the central bank must take a cautious approach given the lingering effects of Trump’s tariffs and global economic uncertainty. He has so far avoided direct responses to the president’s social media attacks.
The disagreement over building costs may seem minor — even semantic — but it reflects a broader strategy by Trump to discredit Powell’s leadership. Some analysts believe the president is laying groundwork to pressure Powell into stepping down or justify a potential replacement in a second term.
After the tour, White House deputy chief of staff James Blair dismissed Powell’s correction as “splitting hairs,” though acknowledged the $600 million discrepancy. “There’s no way around it,” Blair said. “The cost overrun is massive.”
Still, critics note that combining unrelated projects to inflate the headline figure could mislead the public and erode trust in institutions. Powell’s careful, factual response appeared aimed at preserving the Fed’s nonpartisan image in the face of intensifying political attacks.
The Fed’s renovation project, while not typically a front-page issue, has become an unexpected flashpoint in Trump’s pressure campaign against the central bank. As inflation cools and interest rate cuts remain on the horizon, the political stakes are high — and the Fed’s physical facelift has become a symbolic battleground.
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