WASHINGTON — President Donald Trump and Jerome Powell, the chair of the Federal Reserve, had a bit of a showdown during their tour of the Fed’s ongoing renovation at its headquarters. Trump made some claims about costs that Powell quickly corrected.
Even with some of Trump’s past threats about possibly firing Powell over the renovation costs, he emerged from the Federal Reserve with a positive spin. Trump referred to the meeting as productive and mentioned that he didn’t think Powell deserved to be let go. “I don’t think it’s necessary,” he commented bluntly.
A Visit Filled with Tension
This rare visit was essential as Trump has been vocal about his suspicions of fraud regarding the $2.5 billion project to renovate two historic buildings on the National Mall. The president was accompanied by some of his aides who pushed for the tour to review the renovations personally.
Powell didn’t hold back during their stroll as Trump asserted that the updated expenses had hit $3.1 billion. While both of them donned bright white hard hats, Powell was quick to refute this claim, shaking his head and stating, “I’m not aware of that, Mr. President. I’ve not heard about that from anyone at the Fed.”
Following this, Trump handed Powell some documents, which led to another clarification. Powell explained that that figure also included the renovation costs of the Martin Federal Building, a different facility that had already been finished in 2020. “You’re including the Martin renovation. You just added in a third building. That’s what that is,” Powell remarked.
Why the Costs Went Up
The original budget for the current renovations was set at $1.9 billion back in 2019, but it has risen to $2.5 billion largely because of design changes, fluctuation in materials and labor costs, and unexpected issues, such as more asbestos and other soil contamination problems. Powell reassured Trump that there wouldn’t be any more cost overruns, promising a completion date in 2027—”We’re well along, as you can see,” he noted.
While Trump has shifted focus to the renovation costs, it’s important to highlight his ongoing critique of Powell over interest rate decisions. Recently, he has been vocal about his belief that interest rates need to drop further and called out Powell’s timing, saying he felt he was “too late” in making those adjustments. “I’d love him to lower interest rates. Other than that, what can I tell you?” Trump said candidly.
From Challenging to Supportive
Despite the earlier friction, Trump seemed to soften his stance afterward, calling the renovation “a very luxurious situation” and declaring the meeting as genuinely productive, insisting that he didn’t see any need for the tension or a reason to contemplate firing Powell.
When a reporter pushed him to comment further, Trump dismissed the notion that the renovation issues could lead to Powell’s job being on the line, stating, “I don’t want to put that in this category.” He conveyed his belief that Powell would ultimately make the right decision regarding interest rates, even admitting that it might be “a little too late.”
Trump originally nominated Powell to lead the Fed in 2017, and he was confirmed by the Senate a year later, later receiving another nomination from President Joe Biden in 2022. Even though Powell’s term wraps up as chairman in 2026, his board membership continues till 2028.
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The source of this article was USA TODAY: Trump tussles with Powell during Federal Reserve visit but backs off firing threat.
