Trump Clashes with Fed Chair Powell Over Costly Renovation and Interest Rates During Rare Central Bank Visit

In an unusual presidential visit to the Federal Reserve on Thursday, Donald Trump publicly rebuked Fed Chair Jerome Powell, slamming both the central bank’s multibillion-dollar headquarters renovation and Powell’s refusal to cut interest rates.

During the tour of the Fed’s $2.5 billion building project in Washington, Trump criticized the escalating costs, which he claimed had risen to $3.1 billion, and renewed his demand for aggressive interest rate cuts. Though he has repeatedly threatened to fire Powell, Trump said afterward, “To do so is a big move and I just don’t think it’s necessary.”

The visit comes just days before the Fed’s policy-setting committee meets, with rates expected to remain in the 4.25% to 4.50% range. Trump, however, has called for a dramatic 3-point cut, saying Powell should “do the right thing.”

The interaction between the two men became tense when Trump handed Powell a paper with new renovation figures. “You just added in a third building,” Powell responded, referring to a completed structure. The Fed has maintained the renovation was essential, citing structural concerns and rising costs driven by labor, materials, and security upgrades like blast-resistant windows.

Later, on Truth Social, Trump wrote: “It is what it is and, hopefully, it will be finished ASAP. The cost overruns are substantial, but our Country is doing very well and can afford just about anything.”

Accompanying Trump were budget director Russell Vought and deputy chief of staff James Blair, who questioned the oversight of the renovation. Senate Banking Committee Chair Tim Scott, also present, has pushed for answers about design elements like rooftop terraces and fountains, some of which have now been removed to reduce costs.

Despite the pointed exchange, Trump told reporters the meeting was “productive” and denied any tension. Powell, stone-faced during the visit, has insisted on the Fed’s independence, a principle critics say Trump repeatedly threatens with public pressure.

Market reaction to the visit was muted, with Treasury yields ticking slightly higher after new jobless claims fell, while the S&P 500 closed flat.

The project — the first major rehabilitation of the Eccles and Martin buildings in nearly a century — began in 2022 and is scheduled to be completed by 2027, with staff expected to return in early 2028.

Trump’s visit marked the first by a sitting president to the Fed since George W. Bush attended Ben Bernanke’s swearing-in in 2006, and the first time a president has so openly challenged the Fed on its own turf since the institution’s founding.