President Trump sparred with Fed Chair Jerome Powell over the final cost of the Federal Reserve’s renovations during an unusual visit to the central bank.
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Chip Somodevilla/Getty Images North America
President Trump visited the Federal Reserve on Thursday to inspect an ongoing renovation of the central bank’s Washington, D.C., buildings — and in an unusual moment, then disagreed with Fed Chair Jerome Powell about the final cost of the project.
The Fed’s expensive renovation project has become a point of contention as the president seeks to pressure the central bank to lower interest rates more quickly. Its cost has soared from $1.9 billion to $2.5 billion in recent years.
During the visit, Trump and Powell, accompanied by Sen. Tim Scott, the South Carolina Republican chair of the Senate Banking Committee, stopped to address news cameras.
Trump, waving a document, claimed the costs had now reached $3.1 billion as Powell visibly shook his head in disagreement.
“So we’re taking a look and it looks like it’s about 3.1 billion [dollars],” Trump said. “Went up a little bit — or a lot.”
“I haven’t heard that from anybody at the Fed,” Powell responded.
The Fed chair then took the document, looked at it and said the additional costs the president was citing had been for a separate building whose construction was completed five years ago.
Trump then appeared more conciliatory as reporters shouted questions.
“I don’t want to be personal. I just would like to see it get finished,” Trump said referring to the ongoing renovations. “And in many ways, it’s too bad it started, but it did start. And, and it’s been under construction for a long time.”
Trump also appeared to avoid delving into his recent criticisms of Powell.
“Well, I’d love him to lower interest rates, but other than that, what can I tell you?” Trump said as Powell chuckled.
Presidents don’t usually visit the Fed
Trump’s visit marks the first time a president has visited the Federal Reserve since 2006, when President George W. Bush attended the swearing-in of Ben Bernanke, a previous chair of the central bank.
That’s because the Fed has long protected its independence in setting interest rates, which is critical in retaining the confidence of global investors. Presidents in modern times have mostly respected the Fed’s independence and sought to avoid being seen as interfering with its decisions.
But Trump has been relentlessly attacking Powell, describing the Fed chair as a “numbskull” and as “too late” to cut interest rates.
Powell appears before the Senate Banking Committee in Washington, D.C., on June 25, 2025 as part of his semi-annual testimony before Congress.
Kent Nishimura/Getty Images North America
The Fed has maintained interest rates unchanged this year, primarily due to concerns about potential inflation caused by the president’s tariffs. Recent data indicates a 2.7% increase in consumer prices from a year ago, surpassing the previous month’s rate.
Given this upward trend, it is unlikely that the Fed will lower rates at its upcoming policy meeting, despite pressure from President Trump.
Trump has threatened to dismiss Powell
Last week, President Trump’s frustrations reached a peak when he threatened to dismiss Powell. However, he later retreated from this stance without completely ruling it out.
Although the Fed has not directly responded to Trump’s criticisms, Powell has affirmed his commitment to serving his full term as Fed chair, ending in May. When asked last year about resigning at Trump’s request, Powell vehemently stated “No.”
An attempt to dismiss Powell would likely disrupt financial markets and lead to a significant legal battle. Legal experts argue that a Fed chair can only be removed “for cause,” such as legal violations.
The Trump administration’s criticisms of the Fed’s renovation project are viewed as another tactic to increase pressure on Powell and potentially provide a reason for his dismissal. However, legal experts suggest that such justification is unlikely to hold up in court.
Powell has defended the project’s cost overruns, attributing them to lead and asbestos mitigation efforts, as well as nationwide inflation impacting construction costs.
