Fed Chair Powell Clashes With Trump Over $3.1B Renovation Claim During Explosive Tour

Jerome Powell just dropped a truth bomb on Donald Trump's $3.1 billion renovation boast during a heated Fed facility tour.

The Fed chair publicly contradicted the former president's claims—because apparently, even central bankers have limits when it comes to financial fairy tales.

No golden toilets or diamond-encrusted meeting rooms here—just cold, hard numbers and a rare moment of fiscal accountability in Washington.

Funny how $3.1 billion disappears faster than a crypto trader's margin when someone actually checks the books.

Powell stands firm against Trump’s public bashing

When a journalist asked if Powell could say anything that WOULD make Trump ease off his attacks, the president said, “Well, I’d love him to lower interest rates.”

Billy Pulte, who also heads the Federal Housing Finance Agency, has been among Powell’s most vocal critics inside Trump’s administration. Just hours before the event, Pulte posted on X, “Jerome Powell must resign.” That message came as Trump once again floated the idea of replacing Powell, even though it’s not entirely clear he can do so. A recent ruling from the U.S. Supreme Court protected the Fed’s independence, and legal experts say firing a central bank chief isn’t as easy as firing a Cabinet secretary.

“To do that is a big MOVE and I just don’t think it’s necessary, and I believe he’s going to do the right thing,” Trump told reporters when asked if Powell’s handling of the renovation was grounds for removal. At another point, he was asked if the renovation issues amounted to a “fireable offense.” He responded, “Look, I would love to see it completed. I don’t want to put that in this category.”

Still, Trump wasn’t backing down on rate cuts. “We want to see interest rates come down,” he said again while touring the site. When asked if he had noticed any mismanagement while walking the buildings, Trump described the situation as “luxurious.”

Bessent raises alarms over Fed’s influence

While Trump clashed with Powell in person, Treasury Secretary Scott Bessent appeared on Fox Business to voice concern over the Fed’s spending. He admitted, “I don’t really understand what’s going on” with the renovation costs, but repeated that the central bank needed an “internal review.”

Scott argued that its broader operations were threatening its independence and said the institution had become “a new kind of central planning.” He called it “an unaccountable agency,” echoing Trump’s larger talking points.

Powell hasn’t lowered rates once this year. Trump argues that doing so would save the U.S. “hundreds of billions” in interest payments, especially as national debt interest hit $1.1 trillion in 2024.

But Powell has stood his ground, citing broader economic conditions that justify keeping the benchmark rate where it is. Trump, meanwhile, keeps ramping up the heat, using every opportunity, including a construction tour, to drive the message home.

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