Trump and Powell Lock Horns: Fed Renovation Spat Escalates Amid Rate Cut Pressure

Fed Chair Powell faces political fire as Trump demands rate cuts—while questioning the central bank's $4B HQ renovation. Who's bluffing?

Behind the bluster: A high-stakes game of chicken between monetary policy and election-year posturing. Powell's 'data-dependent' stance clashes with Trump's growth-at-all-costs mantra.

The irony? Both sides claim to protect Main Street—while Wall Street quietly hedges with crypto. Classic.

Key Takeaways

• Trump confronted Jerome Powell over the Federal Reserve's renovation costs, claiming they had risen to $3.1 billion.
• The president renewed pressure on the Fed to cut interest rates by three percentage points ahead of an upcoming policy meeting.
• Fed staff cited security upgrades and rising material and labor costs as key drivers of the renovation's high price.

Donald TRUMP made a rare presidential visit to the Federal Reserve headquarters in Washington on Thursday, engaging in a public clash with Fed Chair Jerome Powell over the central bank’s renovation costs and interest rate policy.

Trump presses on renovation costs

Trump criticized the $2.5 billion bill for renovations at the Fed’s historic buildings, suggesting the costs had escalated to $3.1 billion.

During a tour of the construction site, Trump alleged:

“It looks like it’s about $3.1bn – it went up a little bit or a lot.”

Powell responded that the higher figure included renovations for the Martin Building, completed five years prior, and stated he was not aware of any new budget overrun.

Pressure to cut rates

Trump continued to push for aggressive interest rate cuts, demanding the Fed lower rates by three percentage points.

He previously called Powell a “numbskull” for not slashing rates and has repeatedly threatened to remove him, though he appeared to soften his stance during the visit, stating:

“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.”

Fed staff highlight cost drivers

Reporters touring the site with Fed staff were shown extensive security upgrades, such as blast-resistant windows, and were told that tariffs, as well as rising material and labor costs, were significant contributors to the project’s high price tag.

Context of upcoming policy meeting

The visit comes days before the Fed’s 19 policymakers meet for a rate-setting session, where the benchmark interest rate is expected to remain between 4.25% and 4.50%.

Trump’s criticisms come as the debate over monetary policy and government spending continues to impact broader economic discussions.