Video: Trump, Powell spar over $3.1 billion Fed renovation during site visit

UPDATED: Jul 25, 2025 03:09 IST

US President Donald Trump publicly scorned Federal Reserve Chair Jerome Powell on Thursday over the rising costs of the central bank’s multi-billion-dollar renovation project, citing what he claimed was a USD 3.1 billion price tag, far higher than the Fed’s reported estimate of USD 2.5 billion.

“It looks like it’s about USD 3.1 billion. Went up a little bit, or a lot,” Trump told reporters while standing next to Powell during a tour of the Federal Reserve headquarters.

Powell, visibly reacting to Trump’s claim, shook his head and replied, “I’m not aware of that, Mr President. I haven’t heard that from anybody at the Fed.”

Trump then presented a piece of paper from his suit jacket that he said supported his figure. Powell, pulling out his glasses to review the document, pointed out that it included the cost of a separate building completed five years ago.

“It’s part of the overall work,” Trump insisted. “It’s not new,” Powell replied.

Taking to Truth Social, Trump emphasised that the Federal Reserve should focus on lowering interest rates.

TOP REPUBLICANS JOIN SCRUTINY

Trump was joined on the tour by top administration officials and Senators Tim Scott (R-S.C.) and Thom Tillis (R-N.C.), both of whom sit on the Senate Banking Committee, which oversees the Fed.

The group’s visit came amid growing criticism of the renovation, which critics claim is mismanaged. Top White House officials have shifted their focus to the USD 2.5 billion projects and suggested Powell may have violated planning regulations.

Trump, drawing on his real estate experience, said the cost would have led to someone being fired in his business. “If this were one of my developments, and it ran over like this, there’d be consequences,” Trump said, half-joking that Powell could avoid further criticism if he lowered interest rates.

Powell has requested the Federal Reserve’s inspector general to investigate the renovation project, while the Fed has published a detailed explanation on its website highlighting the reasons behind the rising costs.

BEHIND FED'S EXPENSIVE RENOVATION

The Federal Reserve’s renovation of its historic Marriner S Eccles building and a neighbouring facility has seen costs rise from an initial USD 1.9 billion to USD 2.5 billion. Fed staff cite inflation, Trump-era tariffs, and required security upgrades, including blast-resistant windows and seismic reinforcements, as key drivers.

Additional costs stem from complex underground construction due to D.C. height restrictions and preservation rules. Fed officials also clarified that a planned elevator will be accessible to all staff, not just governors, and dismissed a scribbled “Oval Office” label as an internal joke.

Political Pressure Mounts

Trump has repeatedly pushed Powell to cut interest rates, describing him as “stubborn” and out of touch with economic realities. On Wednesday, Trump posted on Truth Social, “The Board should act, but they don’t have the Courage to do so!”

Though Powell’s term runs through 2026, some Trump allies have floated using the renovation as a pretext for removal. A letter from White House budget director Russell Vought earlier this month questioned whether changes to the renovation violated federal planning law.

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