Trump Publicly Rebuked by Fed Chair Powell Over Central Bank Renovations Costs

US President Donald Trump and Federal Reserve Chair Jerome Powell engaged in a public disagreement over the cost of renovations to the central bank in Washington. Trump claimed that the renovation cost was too high, while Powell corrected him, stating that the cost was actually within the budget. The exchange occurred in front of reporters and highlighted the ongoing tension between Trump and the Federal Reserve.

US President Donald Trump and Federal Reserve Chair Jerome Powell engaged in a public disagreement over the cost of renovations to the central bank's headquarters in Washington, D.C. The exchange occurred during a tour of the renovation site, attended by reporters. Trump claimed that the renovation cost was too high, while Powell corrected him, stating that the cost was within the budget. The incident highlighted the ongoing tension between Trump and the Federal Reserve.

The renovation project, which has gone over budget, has been a point of contention for Trump. He has suggested that the project could be a fireable offense for Powell. Trump's visit to the renovation site, scheduled for 4 p.m. ET on Thursday, was previously planned as an opportunity for members of his staff to observe the project. However, Trump's decision to join the tour significantly escalated the symbolism of the visit [1].

During the tour, Trump and Powell exchanged frosty words about the project's timeline and cost. Trump claimed that the renovation had added a third building, which Powell corrected, stating that the project involved significant structural repairs and updates to the historic marble Marriner S. Eccles Building on the National Mall [2].

Trump has openly criticized Powell over the Fed's decision to keep interest rates steady and has suggested a rate cut of roughly 3 percentage points. He has also targeted Powell over the renovation project, accusing the central banker of breaking the law by failing to comply with government oversight regulations. Powell has defended the project, noting that it has always had careful oversight from the central bank's board and its own watchdog [1].

The visit marked a significant escalation in Trump's pressure campaign on Powell. However, Trump has backed off his threat to fire Powell, acknowledging that he would be in the role until his term ends next May. Still, Trump has made clear that he plans to make the remainder of Powell's term uncomfortable, particularly when it comes to the matter of the Fed's building project [1].

The Fed is expected to keep rates steady at its next meeting, which is scheduled for next week. The ongoing tension between Trump and the Federal Reserve could have implications for the central bank's independence and its ability to manage the economy effectively.

References:
[1] https://www.cnn.com/2025/07/24/politics/trump-powell-federal-reserve-visit-renovation
[2] https://search.yahoo.com/search?fr2=p:fp,m:tn,ct:all,kt:org,pg:1,stl:txt,b:&fr=fp-tts&p=Trump+Powell