Federal Reserve Chair Jerome Powell denies $3.1B White House renovation claim amid political tensions

Federal Reserve Chair Jerome Powell publicly refuted U.S. President Donald Trump’s $3.1 billion claim for a White House renovation project during a joint tour of the central bank’s Washington, D.C. headquarters on Thursday. Wearing hard hats and addressing reporters, Powell stated, “That’s not true. I haven’t heard that from anybody,” clarifying that the figure included a separate federal building constructed five years earlier [1]. Trump, who has repeatedly criticized Powell over interest rates, responded by vowing to “take a look” at the matter and asserting, “we’re going to see what’s happening.” The exchange marked an unusual public challenge to Trump’s assertions by the Fed chair, who was appointed by the president in 2017.

The confrontation unfolded amid Trump’s ongoing pressure on Powell to cut interest rates, despite the Fed’s decision to keep borrowing costs steady. When asked if Powell could ease Trump’s criticisms, the president replied, “Well, I’d love him to lower interest rates.” Billy Pulte, head of the Federal Housing Finance Agency, recently called for Powell’s resignation, amplifying tensions within the administration. However, legal experts note the Supreme Court’s recent ruling reinforcing the Fed’s independence, complicating Trump’s efforts to remove Powell [1].

Treasury Secretary Scott Bessent joined the fray, expressing confusion over the renovation costs and urging an “internal review” of the Fed’s operations during an appearance on Fox Business. Bessent criticized the central bank for becoming an “unaccountable agency” and a “new kind of central planning,” echoing Trump’s broader critiques of federal spending. Meanwhile, Trump described the renovation as “luxurious” but refused to label the issues as a “fireable offense,” despite repeated calls for Powell’s resignation.

The $3.1 billion figure cited by Trump far exceeds the $360 million allocated in the 2025 budget for the White House restoration. Powell’s denial not only corrected the claim but also underscored the Fed’s institutional independence in monetary policy. Analysts observed that the incident highlighted the delicate balance between political pressure and the Fed’s data-driven approach. Trump’s public criticism of the Fed, however, risks undermining market confidence in its autonomy, a concern previously raised by independent agencies facing executive overreach.

The episode has sparked renewed debates about federal transparency and the role of nonpartisan institutions in verifying executive claims. With the 2025 midterms approaching, the exchange could intensify partisan narratives on fiscal responsibility. Powell’s firm stance aligns with his reputation for cautious, evidence-based communication, contrasting with Trump’s assertive public style. The White House has yet to formally respond to the Fed’s rebuttal, leaving the dispute to simmer in the public sphere.

Source: [1] [Jerome Powell publicly contradicted Donald Trump’s $3.1B renovation claim during a Fed tour] https://www.mitrade.com/insights/news/live-news/article-3-985481-20250725